Im aiming my hosting at UK clients, how do other UK hosting companies work? should i only allow UK clients to purchase hosting once im up and running? Surely restricting signups to the UK only will reduce occurances of fraud to some extent?

Reduces fraud, reduces clients, its such a tough market you cant afford to throw customers away.

if base on this way your income will less alot as you should target on international ... unless you got the way out :)

We are international. I think it's best for U.K companies to invest at home and across the world.

Unless you're specifically targeting local business or something - I'd say spread out :)

Unless you're a boutique operation offering very customised solutions to local business (i.e. have sales people and consultants to liases in person with them), then spread out. 90% of my clients are non-UK, mostly US.

I can't see how webhosts only serving the U.K are profitable. If they are I would assume its not by much.

You will reduce risk of fraud but you will also reduce the income your company generates.

Best to sell globally and just get a decent fraud protection system integrated into your sign up.

Selling solely to a UK market seriously hampers your income and it's tough trying to compete unless you have the man power and man hours to mount a sales campaign.