Storage distributor Ideal Hardware showed steady growth for the year ended May 3 1996, with profits up 28 per cent to u7.8 million, on turnover which rose by 35 per cent to u138 million.
Gross margin fell from 14.1 per cent to 13.8 per cent for the year. Earnings per share rose 26 per cent to 24.7p.
The firm claimed Digital PCs contributed as much as 20 per cent to turnover while Ideal's own range of storage products Blue Disc contributed u8 million.
The company said it wanted to grow this to u20 million.
Ideal said it was investing u7.2 million on a 80,000 sq ft warehouse in Chessington to improve logistics and was starting a formal training programme for its sales team.
James Wickes, Ideal Hardware MD, acknowledged competition was becoming increasingly tough. 'There are lots of organisations starting up storage divisions so we have to offer better service. That's why we are investing now. Distributors that don't will be on a sticky wicket in two years' time with HP and Compaq pushing margins down,' he said.
He said Ideal had doubled the amount of resellers it dealt with from 2,500 two years ago to 5,000, but needed to increase repeat business.
Simon Miesegaes, formerly with auditing firm Binder Hamlyn, has joined Ideal as its company secretary. It has also bought its second firm in two months, Kinexus, the film company which produces Channel Vision, for u300,000 through the allotment of 45,180 shares in Ideal.
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