CMS Distribution, the Kiltimagh-based technology products distribution and manufacturing business owned by Mayo man Frank Salmon, expects to return to growth this year following a reorganisation of the business.
The group consolidated its distribution business CCI into CMS early last year and bought Interactive Ideas, a London-based software company last November, said Mr Salmon. Interactive Ideas has sales of £30 million (€37 million) and employs 35 people. The price was not disclosed.
The group has also invested more than £2 million in new systems and expects to see an increase in turnover of 25 per cent this year as result of the two initiatives.
‘Solid performance’ Turnover last year was £133,473, almost unchanged on 2012. Profit before tax was also flat at £2.261 million and the company’s net margin was unchanged at 1.7 per cent. Profits should be in the region of £3 million this year, said Mr Salmon.
“ We are satisfied that we delivered a solid performance in 2013 despite the intense market competition, system implementation costs and the closing of our acquisition of Interactive Ideas. I am very confident that we now have a very solid platform for growth in the coming years, and I look forward to delivering on this in 2014 and beyond,” he said.
The company is planing to increase sales to £250 million by 2015 with the ambition to be a £500 million company by 2020, said Mr Salmon.
Diverse CMS interests CMS’s business is split roughly equally between business and consumer products and 80 per cent of sales are in the UK. Ireland accounts for around 15 per cent , said Mr Salmon
CMS is the authorised distributor for 60 technology brands in the UK and Ireland including SanDisk and Symantec. It also designs and manufacturers USB drives and other products under its own brands.
The company employs 140 people in London and Harrogate as well as 60 in Kiltimagh. The company is over 80 per cent owned by Mr Salmon who established it in 1988.
A former finalist in the EY Entrepreneur of the year programme Mr Salmon was speaking in Seattle last week at the 2014 chief executive retreat run for the current finalists and former finalists.
