There is a lot of negative news coming from our industry in recent months with Grainger Games, Gameseek and now Games Centre not being able to make things work. I am conscious that this will have an adverse affect on existing companies in the industry so I want to talk about my company and our current position.
Xbite has been on a growth curve since 2004, and today we employ over 90 people and have significantly diversified our business into 10 categories. We used to be 100% reliant on video games but today that represents just under 50% of our income. Last year our turnover reached £38m and this year it will be slightly less but with a significant increase in margin.
How are we achieving this growth? When broken down into key areas its nothing special. We apply hardwork, focused attention on detail, run small projects that either have direct commercial gain or builds infrastructure for future growth and are also now benefiting from the investments made 6 years ago in IT systems and our dedicated 4 acre site. The business works hard in every department including the non-core commercial areas such as HR, physical infrastructure, employee working environments and the various in-house IT systems.
To give an insight of the projects we are working on today:
We started a £1m warehouse extension in January 2018 of 21,000 sqft on our dedicated 4 acre site. We hope to fill the facility in 2-3 yearsWe have been running our apprenticeship scheme for over 6 years and successfully retained the majority, some who have gone onto high profile roles in the business. See the previous post below which includes a video.Recently moved into a custom built, open office environment which is modern and fresh. Due to our growth we need to further expand the office space by an additional 2,000 sqft totalling 8,000 sqft by September 2018.Continue our product diversification projects. We are seeing great success in a number of areas and find these items help sell our core video games offering on 365games.co.ukOur UK income has generally flat lined during April and May and we feel disappointed with this result given we are working at 100 mph to make progress. Given the recent negative events we are clearly outperforming the market.In the last 6 years we have invested £1.5m on our in-house IT systems and even today we are working on IT projects that will help us sell more, be more efficient and maximise our margin where possible.Although this is easily said, we enjoy great relationships with our suppliers. We are easy to work with we have seen a number of accounts grow significantly.
I feel Xbite will experience our best peak period in our history in Q4 2018 as we are poised to take advantage of the investments we have made to date. It's easy to focus on the negative news which is dominating the press in general retailing, but Xbite continues to invest and see growth in a number of areas and is not experiencing the significant issues other companies are facing. - Nick