Mobilex wants to become one of Europe's leading computer components exporters. With turnover soaring to £130m and profits growing threefold in ten months managing director Steven Bell talks to Deputy Business Editor Kate Bowman about the future.

MOBILX started out in December 2003 buying old mobile phones from the Carphone Warehouse, refurbishing them and selling them on to companies in the developing world.

In the past two years, its has become the fastest growing computer components company in the North-East, and plans to open a distribution centre in the South. There is also talk of making at least one acquisition this year.

The company buys computer components and then sells them to some of the world's leading PC manufacturers, mainly in North America.

Mobilx recently moved from a unit on the Team Valley Trading Estate into £1.25m headquarters on Newcastle's Quayside and has invested in two local computer companies.

Managing director Steven Bell said it was while talking to people at trade shows that he realised a shift from mobile phones to computer components would be a lucrative move.

"I realised that there was a similar market in computer components and a move would be more profitable. We made the transition at the back end of 2004," he said.

In its first 14 months, from December 2003 to February last year, Mobilx achieved sales of £36m and profits of £2.4m.

In the ten months from February to December last year, sales grew to £130m, with profits of £8m.

Mobilx has set up a sister company, ITX International Limited, based in the same offices in Newcastle, to export memory chips and hard drives from the UK to customers in the US and Far East.

The move created two jobs to add to the workforce of 12 at Mobilx.

There are plans for the company to grow through acquisitions and Steven already has his eye on a computer component mail order business in the region.

Steven says: "We know that the best way to grow is through the acquisition of a component company in the industry, preferably a more established company. We already have the ability to make an acquisition, it is just a matter of finding the right opportunity.

"Our customers can buy certain components from us and go elsewhere for others - we know they would happily buy them all from us, but we are not well enough established yet to handle that amount, so that is why we are looking to acquire another company, ideally in the North-East.

"But while we are waiting for an acquisition we are not just sitting back - we are growing organically and moving into dealing with other components."

Organic growth has led to Mobilx looking to buy a site at a London Heathrow industrial estate to house a larger distribution centre.

The company has also invested heavily in two computer firms in the North-East, including a software company in Sunderland.

Steven says: "We have cash set aside for acquisitions and investment, so there are a couple of firms we have put money into that we think have the potential to grow rapidly in the future.

"Basically, they are companies that are not developed enough for us to buy, but the interest is there and we think we can work well together. These guys will benefit from doing business with the companies we are already dealing with."

Steven says the next 12 months will be a turning point for Mobilx in becoming one of the leading computer exporters in Europe.

"We will be looking to grow the core of the business while developing ITX equally as rapidly as Mobilx.

"We will hopefully have made an acquisition by the end of the year to grow the group structure.

"Moving to Newcastle Quayside has certainly helped."

Mobilx bought the property, in City Road, for £1m and spent £250,000 refurbishing the site. As far as Steven is concerned, it was money well spent.

He said: "We wanted to be in the business district, rather than in a unit on the Team Valley, and the new site now has the right image so we can now invite customers over form the US."