Global positioning puts Widget in a good spot

Mobile technology distributor has seen surge in sales to both businesses and consumers

Mobile technology distributor Widget UK claimed it has quadrupled turnover and tripled profit in the past 18 months thanks to a massive surge in take-up of global positioning systems (GPS).

Mark Needham, managing director of Widget UK, said: “As well as increasing turnover and profit, Widget has brought its balance sheet back from negative equity. The growth is expected to continue with a further increase of 76 per cent in sales next year.”

Widget operates in three areas: card scanners, PDA accessories and hand-held GPS.

“In the past 18 months, sales of our GPS products have gone through the roof. We are the UK’s main distributor for TomTom, the market leader in portable GPS. Although we sell other brands of GPS, TomTom is the big one. The first stand-alone GPS, the TomTom Go, came out in August, and the units sell as soon as we get them in,” Needham said.

Needham predicted that GPS will continue to grow at the same rate. “Eventually, it will reach saturation, like the mobile-phone market. Although it has been mostly consumer-led, the business side of the market is beginning to grow. There is definitely an opportunity there for resellers.”

Rachael Lashford, analyst at Canalys, said: “Across Europe we have seen sales of GPS surge in the past two years. The trend has kept the hand-held market moving along. Since the launch of the TomTom Go, we are seeing more stand-alone versions, known as personal navigation devices, pushing through.”

David Gould, trading director at PC World Business, which has had a relationship with Widget for several years, said: “We have been pleasantly surprised by the number of businesses buying GPS. It was clear to us that the TomTom product was applicable to both consumers and businesses, but it was only at the end of last year that the business side started to take off.”