Online retailer ups group profit by 60 per cent to £81.8 million and pre tax profit to £3.4 but Expansys UK operating loss widens to £1.214 million
Marlow based online retailer Expansys has increased its full year group turnover by 60 per cent to £81.8 million and upped its pre tax profit to £3.4 million compared to the overall £0.2 million loss it posted last year.
It said the increases were “significantly enhanced” by acquisitions of Data Select Network Solutions (DSNS) and PJ Media in July 2010.
DSNS UK posted a before tax operating profit of £4.038 million while PJ Media posted a pre tax operating profit of £366,000.
The company which moved it headquarters from Manchester to Marlow last year also managed to cut its before tax loss from £2.7 million to £700,000 during the year.
A rise in retail sales in the UK and Europe of 30 per cent like for like also contributed to the increases.
Despite the rise in this area, Expansys CEO Anthony Catterson said the UK had been the company’s “most challenging” market over the last year.
Expansys UK posted a before tax operating loss of £1.214 million, compared to £23,000 the previous year.
He said despite the success of products such as the iPad , iPhone 4 and HTC Desire, low consumer confidence in the UK had made it difficult to retain existing customers and attract new ones.
Catterson said in response Expansys had reduced its UK cost base and consolidated some of its UK support processes into its European business.
“We strongly believe we can grow the UK business through improved proposition but will focus on faster growth opportunities elsewhere in the short term,” Catterson said.
Catterson said globally the company was now moving into a stronger position following a shaky period.
“After a transitional 12 months and challenging trading conditions in our core retail business, Expansys emerges with improved performance and a strong strategic platform for growth and continued success,” Catterson said.
“We have clearly identifies our opportunities for growth and remain focussed upon the efficiencies in all areas.”