Ideal Hardware Plc declared itself encouraged by interim pre-tax profit up 34.5% at UKP2.3m on turnover 55.5% to UKP45.7m. Business is generally skewed towards the second half, and the results promise a good maiden year since its flotation in June (CI No 2,447). In the half the Tolworth, Surrey computer storage systems distributor has added a distribution agreement with IBM Corp, been appointed as UK distributor for AT&T Corp’s new range of personal computers and storage peripherals and signed a deal with Quantum Corp, to which Digital Equipment Corp sold its storage business. The AT&T deal is Ideal’s first move into personal computers. As AT&T’s only UK pc distributor, Ideal’s margins should be good and it presents another vehicle for selling storage peripherals. Ideal has also bought new premises in New Malden for UKP1.7m, as part of a UKP4.2m investment plan. The larger offices will enable the company to integrate the warranty operation from Heathrow and sales from Tolworth to make it more efficient and double the sales force to 70 in 18 months. Ideal expects to add between 75 and 100 to overall staff in the next year. Ideal will also upgrade its infrastructure to cope with present and projected demand, with funds raised from the flotation and the second placing in July (CI No 2,458). As well as distributing other people’s products Ideal has two brands of its own – Blue Disc and Cadet, its first retail branded product. Cadet has been well received and though it does not boast a great margin, it has brand potential in the future. Ideal is also set to enter into the world of television on February 6 1995 with Channel Vision on the Ideal Television Network, to complement its existing marketing. The 30-minute programme will provide resellers and their employees with access to product development, technical issues and industry news in a magazine format. Some 500 dishes and decoders are being initially installed at Ideal’s largest customers. The only disappointment in the half? The continued failure to distribute for Hewlett-Packard Co. The reason? I haven’t a clue, says James Wickes, managing director. Ideal will pay an interim dividend of 3.4 pence.
