A move into PC assembly has helped distributor Target Components record a sixth consecutive year of sales and profit growth.
For its fiscal year to 31 March, Yorkshire-based Target saw revenue rise 4.4 per cent to £20m, as pre-tax profits inched up 0.9 per cent to £706,500.
Target began building unbranded desktop PCs in its warehouse in September and is now producing 500 units a month. It offers 25 to 30 lines including home, business and gaming systems, and media centres.
The past five years have seen a dramatic shake-out in the local PC assembler space as a price war raged between the international A-brands.
Target managing director Paul Cubbage (pictured) acknowledged this trend but said the new service appeals to the firm's time-pressed customers, 60 per cent of whom are independent retailers.
"The IT market is bizarre in that you do not pay a brand premium, but rather a brand discount, as [the A brands] can assemble cheaper than the locals," he said. "That is what has killed off local assembly in the past five years, particularly in laptops.
"But we have found it works well for us. Customers can use the time they would have spent assembling computers on-site for other activities, and it works out cheaper for them."
Target's entry-level home and business systems start at about £150, while its top-end gaming systems are pitched at £800.
With Target's rate of growth slowing from last year, Cubbage said the distributor had made an effort to expand its repertoire, having also recently moved into the distribution of everyday office supplies such as paper, hole punches and staples.
The distributor, which has about 2,500 active reseller customers, also last year launched a free business advisory service. This includes one-to-one mentoring, weekly business advice and fortnightly workshops.
Target shares 10 per cent of its profits equally between its staff and the pre-tax figure mentioned above is after this has been deducted.
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