March 3, 2008 - Crains Manchester Business - Telecoms Company Seeks New Space - Michael Fay -

Telecoms company seeks new space as sales set to hit £4m
Firm set up for a one-off trade now provides equipment to Nato in Iraq
By Michael Fahy

A Salford-based telecoms distributor which has been actively trading for around two and-a-half years, is looking to move out of its serviced office base because it is restricting growth.

NB Data, which turned over £1.3m in the year to June 2007, is forecasting sales of £4m this year, but said that its eighth-floor office accommodation in central Salford is no longer suited to its needs.

The firm distributes telecoms and data equipment and director Neil Hinde said it now handles around £100,000 worth of stock and sends out between 50-100 parcels every night.

Although its current office is both cheap and secure — “no-one's going to ram raid the eighth floor of a 24-hour manned office block” — the firm said its long term goal is to find its own space.

NB Data was established in 2004 by Hinde and Gary Basso, who met at a previous employer. Basso said it was initially set up for a one-off trade — “I bought some IT equipment for my brother and brother-in-law”.

At the time, he was a sales director and 33 per cent shareholder in business telecoms reseller Gemini Telecoms, which had billings of around £3m when it was sold to Alderley Edge-based Chess Plc in 2004.

Meanwhile, Hinde and his wife Lisette were running the northern operation of London-based East Telecom.

Rapid growth

“It grew from £23m to £100m and then went bump overnight,” explained Hinde. “It happened at the same time as my wife was recovering from breast cancer. We weren't having a good time of it.”

Hinde spoke to Basso and they decided to use NB Data to launch a telecoms distribution firm in June 2005. “We had no bonuses, no money, no wages or anything. We basically took our reputations to the industry.”

Basso joined as soon as his earn-out clause at Chess ended, and the trio now employ 12 people.

They have also launched a joint venture with Birmingham-based installations firm Incom Systems called Proactive Networks, which Basso said has carved out a niche installing systems into mosques and Asian community centres.

A third venture, Big Box Distribution, was set up when the firm purchased the assets of an Irish business that went into administration. It sells telecoms equipment directly to the general public.

Substantial growth

“It can be anything from someone looking for a cheap phone, headset or a fax machine. We've not had any experience in web retail and yet the growth has been substantial.”

He said the site had received enquiries ranging from “Joe Public to Nato in Iraq”.

Basso said: “I don't know how they came to us — it's the power of the internet, I suppose. But we sold a couple of conference phones to a Nato base in Iraq.”

One local entrepreneur who has previously worked closely with Basso told Crain's that he felt the venture would be a success.

“He's a capable lad who worked hard to build Gemini and I'm sure he'll do the same with this. His background is in distribution, so he knows the market well,” said the entrepreneur, who declined to be named.

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