The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 25th to 11th...
"Covid caused a huge increase in the IT footprint"
23. Target Components
Revenues: £39.8m (+15%)
Vendors include: Gigabyte, Intel, Team Group, Cooler Master, Seagate, Western Digital, PixL, AMD, Marvo, Ubiquiti, Inno3D
HQ: Castleford, West Yorkshire
This Yorkshire-based components distributor saw revenue rise by 15 per cent to £39.8m in its year to 31 March 2021 (according to fresh numbers it shared with us), and expects its top line to hit £50m in its current fiscal 2022 on the back of feverish demand for home-working and home-schooling tech.
Known for its focus on independent retailers, etailers and SMB resellers, the 23-year old firm claims to offer over 10,000 product lines, from cables and laptop parts to servers and networking products.
Quickfire Q&A with MD Paul Cubbage
What specialism is your firm known for, and what sets you apart from your peers?
Historically we were seen as the distributor that looked after independent retailers, but we've seen in the last few years that the same ethos that works well with indies is equally appreciated by all types of customers.
Which emerging vendors are you betting big on this year?
Our exclusive brands PixL (monitors and monitor arms) and Marvo (gaming peripherals) have been our most successful ever UK brand launches. In VGA, Inno3D have ambitious plans for the UK market and we're excited to be working with them. In networking we're seeing significant growth in Ubiquiti and Teltonika winning business in some interesting areas such as electric car charging facilities.
Have you made any significant vendor signings in the last 12 months?
We're constantly developing our range, with recent additions including Inno3D, Mercusys, PNY, Netac, and EnerJ, plus we were recently appointed official Nvidia partners.
What's the biggest misconception about distribution?
That it's just box-shifting with no value add or support.
How would you summarise the health of the distribution sector in 2021?
Vibrant. The covid impact on home-working and home-schooling caused a huge increase in the IT footprint, and much of this will endure beyond covid. That means ongoing additional demand for repairs, upgrades and replacements which is great for our customers and by extension for distribution.
What's been your biggest disappointment of the last year?
Bolton's form in the first half of the season. Fortunately, all's well that ends well.
Do you expect to grow in 2021?
Absolutely. We're forecasting in excess of £50m sales, up from £40m in our year just ended (March 2021).
How do you see the role of distribution changing in the 2020s?
Covid, component shortages, and to a lesser extent Brexit have shown how important it is to be adaptable. Distributors that genuinely put their customers and partners first and can adapt quickly to changing circumstances will continue to thrive. Those that can't and struggle to differentiate their offering will find it tougher, so I think we'll see a gradual process of the biggest distributors trying to emulate aspects of the smaller ones to try to remain relevant.
Which distie wants to be known as more than just Europe's largest spare parts player? Find out on the next page...