New Malden, Surrey-based Ideal Hardware Plc has had an ideal maiden year, with pre-tax profits up 34% at ú6.1m on turnover up 42% to ú102.3m after floating on the London Stock Exchange last June. Since it started business in 1987, the computer storage device distributer has seen both its turnover and profit rise steadily year on year, and the curve of its graph continues to rise. The company used the money it raised last year to purchase and move to bigger premises in New Malden and upgrade its computer systems, so that it can increase its sales force to cope with increasing demand. Ideal now employs 47 commission-only sales people, compared with 36 at the time of flotation, with a target of 80 people by the end of the year. Managing director James Wickes attributes the company’s success to focusing its business on storage devices, such as disk drives, tape streamers and optical disks, and on its high level marketing to customers. As well as a glossy magazine and catalogues on CD-ROM, the company has launched its own satellite television channel, Channel Vision (CI No 2,553). Resellers are given satellite dishes and decoders, and a weekly 30-minute television programme about Ideal products, how they work and how they can be applied. Six months ago, Wickes was asked why he was still failing to distribute for Hewlett-Packard Co, to which he replied, I haven’t a clue (CI No 2,553). Happily, he appears to have remedied the situation, and from September will be distributing Hewlett-Packard products. While focusing on storage, the company also distributes Digital Equipment Corp and AT&T Corp personal computers. Wickes is extremely confident for the future. He believes that demand for data storage will continue to increase rapidly, and Ideal, which claims 15% of the UK market, is now geared up to raise this share significantly over the next few years. The final dividend is 5.2p, making a total of 8.6 pence for the year, as promised in the flotation prospectus.
