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Target Components announces record revenues

In a world full of doom and gloom, it’s nice to see a little rainbow glow coming from Castleford. With today’s announcement, Target Components can draw a positive line under its efforts in recent years, to combat the nation’s negativity and offer something a little more chirpy. KitGuru peers through the rain to check the numbers.

Distributors come in all shapes and sizes, from the monolithic Avnet and Ingram to smaller and more specialised operations. For the technology markets they, essentially, provide a buffer between local stores and the manufacturers out in South East Asia.

Manufacturers want to ship products in huge containers, which travel the oceans for weeks before arriving on our shores. Your local PC store wants to buy a handful of products and put them on the shelf for sale. Companies like Target provide that buffer – holding stock and offering credit, to make sure the market runs smoothly.

So what kind of product might you buy in a shop, which has been supplied by Target?   Well, they carry a broad range – including Biostar mainboards, AFox and Sparkle cards from nVidia, alongside some VTX3D graphic cards from AMD. Target also does Samsung external drives and Hitachi internals.

Target also manufacture what the industry calls ‘White Box’ solutions. These are PCs that are pre-built to a professional standard, then sold to stores who want to ‘add the final touches’ themselves before offering them to the public. This has the advantage of allowing smaller computer stores to carry a wide range of specifications – without needing to hold all of the stock required to build them. Think of it like ‘Dell on a very small scale’.

Having posted £20 million in revenue, Target is officially 4.4% up on last year and it also managed to create over £706,000 in profit.

Nice.

This is now the sixth consecutive year of profit growth for the distributor, and the fifth record profit performance in a row, but represents a slowdown following five successive years of at least 40% bottom line growth.

Speaking about Managing director Paul Cubbage commented “We’re delighted to announce another record year in the current climate. We’ve invested heavily this year to increase the level of help and support that we provide our customers, particularly free business advice via Target Business Advisory Services and Shoptalk. We’ve also invested significantly in increasing our headcount, so to see profit increase is particularly pleasing, and is once again a testament to the resilience and loyalty of our customers”.

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KitGuru says: Overall, this is great news for the channel, because it shows that there IS life in the technology market.

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