KF Group, trading as Tempo, sells everything from kitchen appliances to audio equipment and computers. Founded in 1981 by chief executive Gerald Kraftman, the company has expanded from five shops in Surrey to 50 outlets around the country. It is now the fifth largest electrical chain in the UK. Gerald Kraftman’s son Paul remains with the company as sales director, but the family sold most of its shares to venture capitalists 3i in December 1999. Profits have increased by 32% pa, from £3.4m in 1996 to £7.9m in 1999. Sales grew by 18% pa to reach £139.6m in 1999. Financial director Paul Owens says Tempo’s policy of stocking kitchen, audio, television, and computer products under one roof has encouraged cross-over sales. Growth has enabled economies of scale and given the company increased purchasing power, enabling it to buy in bulk at discount prices.
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