Distributor Target Components has reported more than 20% sales growth for the year ended March 2020.
Accounts published at Companies House show turnover up £6.1m to £34.6m, beating last year’s record of £28.5m. Gross profit grew by 20.5% with pre-tax profits up £340k.
The strategic report puts the growth down to Target’s long term growth strategy starting to bear fruit.
Target Managing Director Paul Cubbage expands “We had seven consecutive years of record sales to 2017, but in some ways were running out of steam and knew we had to significantly reposition the business for growth. That meant lots of hard graft, and at times knowingly doing things – like replacing all our internal systems – that take us backwards in the short term in order to go forwards.”
“We’re now at the early stages of seeing the rewards, and it’s nice for the whole Target team to see the benefits of their hard work with the momentum in the business now, the excitement of consistently setting new record months and record weeks, and of course with the profit share.”
“One of the main pillars of our growth plan is to increase our appeal to the market, so it’s key that our customers see the benefit of significantly improved product range and pricing and service improvements across the board, and the numbers show they are really responding.”
Targets growth has continued into the current year with the distributor reporting year to date sales up over 20% and revenue for the year expected to exceed £40million.
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