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Expansys in airtime push as profits up

Mobile News
December 21, 2010

Online electronics retailer Expansys has started selling smartphones on contracts from Vodafone, T-Mobile and Three in an attempt to expand on its success in the SIM only market

Speaking to Mobile News after the release of the company’s six month results, Expansys chief executive Anthony Catterson said he expected more networks to become available at the store in the New Year.

“The availability of contracts has come earlier than expected but after our success in the SIM free space we have realised that the majority of people who buy a smartphone do so on a contract,” Catterson said.

“We would like to think we could get more operators on board in the new year.”

Expansys is connecting with T-Mobile and Three directly, and via Fonehouse for Vodafone.

Strong smartphone demand meanwhile has allowed  Expansys to post a pre-tax profit of £1.4 million for the six months ending October 31 compared with a £0.2 million loss for the same period in 2009. The result is the first profit the business has posted since it was publicly listed in 2007.

However, with amortisation of acquired intangibles, relating to the company’s reverse takeover of SIM card distributor Data Select Network Solutions (DSNS) and online marketing services provider PJ Media, its profit was marked down to £39,000, compared with £24,000 one year ago.

Nevertheless, its overall smartphone sales were up 32 per cent on a like-for-like basis while retail sales rose by 31 per cent. Revenue was also up by 61 per cent to £32.7 million and its cash position is up to £5.5 million from £0.5 in 2009.

Catterson said Expansys was “seeing the benefits” of the acquisitions and they had put the company in a strong position.

He said Expansys would continue to look at further acquisitions as it moved forward but did not elaborate.

“We are encouraged by what the business has achieved in H1 as the strategic benefits of the new group structure including DSNS and PJ Media begin to flow into our activities and results,” he said.

“We will continue to look at acquisition opportunities, and will update the market as appropriate.

“As we move into H2 and the important Christmas trading period, in what continues to be a challenging global market, we hope to see continued improvements across the group as we shape Expansys for the future.”

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