C2000 eyes £2bn sales as market consolidates

Broadline distributor Computer 2000 (C2000) is looking to double its turnover in the next five years to become a £2bn company.

The behemoth, which ships 6,000 items in the UK every day, is also looking to ramp up its share of the UK distribution market ­ which stands today at between 14-18 per cent ­ to 25 per cent over the same time period.

Andy Gass, managing director UK, Ireland and Middle East at C2000, told CRN: “Growth is at the heart of our strategy and acquisition is definitely on the agenda ­ but we are going to drive organic growth as well.”

He said the firm is focusing on diversification ­ it already operates several specialist units ­ Azlan, Brightstar, Datech 2000 and Maverick ­ and also plans to look at other organic expansion areas such as TVs, mobiles and projectors.

“We also want to be expansive in credit and offer proactive finance and credit to our customers,” he said. “It is amazing how resilient the smaller resellers are when times get tough and how they adapt their models to stay profitable.”

Gass said that the distribution industry was seeing a “tangible slowdown” at present, but it was not dampening his ambition for C2000.

“There is going to be a shake-up of distributors in the coming year and I would say a 30-40 per cent reduction in distributor numbers in the next three to four years. There will be a lot of opportunity around acquisitions then.

“I am confident in us as a business growing through that. When I look back to 2001, there was definitely an IT recession, but I do not think we are looking at anything like that now.”

Alastair Edwards, senior analyst at Canalys, said the market was ripe for the picking.

“There are still a lot of distribution players in the UK and eventually these are going to come up for sale, or will withdraw from the market, which a company like C2000 will be able to take advantage of. However, growing and maintaining profitability will always be a challenge in this climate.”