Target hits the bullseye in FY10

Distributor posts robust top- and bottom-line growth in latest financial results

On Target: The distributor grew sales by 35 per cent in the year to 31 March

Target Components grew its top line by over a third and more than trebled pre-tax profits in a stellar 2010 fiscal year for the Castleford-based distributor.

The company's turnover for the year to 31 March grew 35 per cent year on year to £17.5m. Profit before taxation was up more than 200 per cent to £450,000, 10 per cent of which will be split between all employees. Staff levels increased 40 per cent during the year.

Target claims it is on course for another record year in FY11, after posting first-quarter sales growth of 25 per cent. Revenue in Q2 is so far up 36 per cent compared with the same period last year. The distributor will be hoping for further growth from its fledgling server arm, which contributed £1.5m revenue during its first 12 months in business.

Target's managing director Paul Cubbage said all profits would be retained and reinvested in further growth. He added that the distributor's solid performance highlighted the resilience of the UK's reseller base.

“Our customers are primarily independent retailers and small to medium resellers and, whilst our customer numbers are up, we have also seen a very healthy growth in customer spend," he explained.

"I believe the last couple of years have seen a resurgence of independent retailers with local expertise and the ability to offer a more personal customer service approach. We couldn’t have achieved the level of growth without the strength of our customers.”