CMS, the Co Mayo-based technology products distribution and manufacturing business owned by Frank Salmon, saw profits jump by 52 per cent last year.

The company, reportedly considering a possible flotation as it seeks to increase sales to over €700 million by 2020, recorded pretax profits of £2.87 million (€3.34 million) last year, compared to £1.63 million in 2014.

Newly filed accounts show turnover at the Kiltimagh-headquartered company rose to £166 million from £162 million in the preceding year. CMS Distribution is the largest independent value-added distributor of data storage, networking and IT infrastructure solutions in the UK and Ireland, servicing over 50 manufacturers and 2,800 resellers. It employs more than 250 people, including more than 50 in Ireland.

Mr Salmon, a former EY Entrepreneur of the Year finalist, established CMS in 1998. He has an 85 per cent stake in the company.

"Business is going well. Last year was a good one for us and we intend to scale and grow the business further in 2016," Mr Salmon told The Irish Times.

As much as 80 per cent of CMS’s sales derive from the UK but Mr Salmon said the company is taking action to safeguard any negative impact from Brexit.

The company acquired UK rival Widget Group, which has operations in the Netherlands and Sweden, for an undisclosed sum earlier this year, which gives it a foothold for further expansion into mainland Europe. Following the acquisition, CMS said it is targeting combined revenues of more than £300 million for 2016.

“We’re already seeing most of our suppliers have increased product prices by about 10 per cent following the Brexit result so that will slow down things but this will be offset as we increase our investment into mainland Europe,” he said.

Mr Salmon said the company’s Irish business was performing well, adding that CMS was taking on up to 10 new employees.

Staff costs at CMS, including wages and salaries, fell from £2.35 million in 2014 to £1.65 million last year. Directors’ remuneration totalled £139,346 versus £221,746 in the prior year.

Shareholders’ funds at year end stood at €9.3 million, up 36 per cent versus £6.8 million in 2014.