UK distributor Northamber last week showed startling increases in turnover and profits for the full year to April 30.
Turnover for the year jumped to u233 million from u178.5 million for the 1995 financial year. Profitability was also high at u6.25 million - a rise of 78 per cent from last year's u3.57 million.
That means a profit before taxation of more than u5.5 million, a vast turnround in the past three years. The PC recession hit Northamber hard, but it has managed a recovery over three years led by the partnership of MD Henry Matthews and founder and chairman David Phillips. The share price fell on the news.
Phillips said business continued to grow strongly over the past year.
'I referred to a sounder trading background last November,' he said.
'This trend is ongoing in the new trading year.'
According to Phillips, the market is now firmer. The company had formed a number of significant relationships for certain vendors, he said, making it a primary stockist of machines. IBM is understood to be one of the vendors; the list also includes Tulip, AST and ALR.
Although the number of employees rose from 261 to 301 over the year, sales per head grew from u638,000 to u773,800.
Looking ahead, Phillips said Northamber will broaden its business base by moving into computer telephony. It will expand its sub-assembly sales activities, configuration and third-party logistics, helping it to increase its business with strategic vendors.
Earlier this year, IBM said it would allow distributors to configure machines and it is widely understood in the industry that Northamber is one of its favoured business partners. Neither Phillips nor IBM were prepared to comment.
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