Smoke,
in easy words TCLL takes advantage from all kind of arbitrage related to the wireless communication sector. They buy huge stocks of 'old collection' Handies lets say in UK and sell it to Cypress, where this products are considered as latest editions. They arbitrage different currencies and they take advantage from their status as a 'free' reseller, thus means they are not bound to certain labels. The latter aspect justifies their huge business in the UK. Of course they are operating on low margins because they have to have a quick turnover and are operating in a tight margin business in general.
N2J in contrast is a former shell company (housing construction) and posseses a VAT refund licence. That causes them to just export products and some further obligations. The VAT refund has two positive impacts. 1) you have a much better cash flow that allows you to enhance your turnover and revenues and 2) your earnings/margins are much better. Virtually they are in the same business than TCLL but they have to focus on exports out of the UK which probably generates bit higher margins. Last but not least they have a small overhead (don't know if the four managers are paid through TCLL or N2J *lol*)
This aspects caught my intention because the same director are responsible for both companies business and should have the same customers abroad. But in terms of profit optimization its much more cunning to serve the customers outside the UK through N2J because of the VAT stuff. That's why I said that TCLL is just buying the VAT licence of N2J - seems to nothing more than that.
Regards
Arturo
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