Tablet PC boom blamed for Mesh woes

System builder saved from administration by distributor PC Peripherals

Mesh Computers has become the first casualty of the tablet PC boom, with its administrators blaming the new form factor for the firm's financial problems.

The London-based PC maker appointed administrator MacIntyre Hudson yesterday, at the request of the firm's board of directors.

The company was then snapped up by computer components distributor PC Peripherals for an undisclosed sum, with its new owner pledging to provide hardware support to the company's existing warranty holders.

According to Mesh's most recent set of financial results, the firm made a profit of £183,785 and saw its turnover peak at £16.8m in 2009. During the previous year, it recorded a loss of £3.4m.

In a statement, Paul Davies, principal at MacIntyre Hudson, said the growing popularity of tablet PCs was as much to blame as the recession for Mesh's problems.

"It is not just the recession that has hit IT firms hard – the rise in demand for iPads and other tablet devices over laptops and PCs means we are seeing lots of changes in the sector across the entire supply chain, from manufacturing through to distribution and retail," said Davies.

Reza Jafari, company director of PC Peripherals, said: "We are pleased to have completed this acquisition and see it as an excellent platform from which to develop our business.

"Mesh Computers' 25-year history of manufacturing in the UK is a solid foundation to build from and we are looking forward to investing and moving into our next phase of growth," he added.