Distributor Target Components has posted a record £25.5 million in sales for its 2013-14 financial year, and is projected to reach around £30-£35 million over the next 12 months.
This is up from Target’s previous record – last year’s £21.5 million – and marks Target’s fifth consecutive year of record sales.
The firm’s profit share (the 10 per cent it shares equally between staff) is also higher now than its average annual profit over its first ten years in business.
The news comes just one week after Target suffered a warehouse break-in, with £300,000 of stock stolen, and MD Paul Cubbage assures us it has recovered and is back on track.
He explains that a lot of Target’s current growth is down to increased customer spend, as opposed to an increase in its number of customers which it has typically achieved each year.
For example, in March, Target achieved £300,000 growth in sales due to customers spending more year-on-year, and £100,000 growth due to net customer gain.
"Whilst increasing customer numbers suggests growth solely due to us gaining market share, increased average spend could be interpreted as our customers – primarily indies and small-medium resellers – being much stronger than in previous years," MD Paul Cubbage told PCR.
"We’ve also had a really strong start to the new year. Albeit only a couple of weeks in, we’ve already set a new record day and a record week (last week) and we’re well on course for a new record month. If we carry on at our daily sales rate we’ll comfortably pass £30 million sales this year, and if we carry on at the same rate of annual increase, based on same period last year, we’ll comfortably exceed £35 million."
"And to give some historical context, the record £25.5 million in sales is more than double our turnover in 2008."
Cubbage explained the reason for the growth: "We’re always looking at ways to do more for our customers, to get closer to them, to improve our service, our product range, our prices and our performance in all areas. And to relentlessly drive improvement, you need to be constantly improving your systems.
"All of which we’ve done consistently over the last few years."