Feeds

Dragons' Den Jones' etail biz Expansys back in the red

Reports £18.8m loss as retail sales dive, one-off costs soar

Build a business case: developing custom apps

If mobility etailer Expansys were to be put in front of majority shareholder and Dragons' Den badboy Peter Jones in its current guise, his response may be something along the lines of "I'm out".

Dragged down by its online retail shop, sales at the AIM-listed outfit fell 14 per cent to £93.2m, as profits before tax of £1.5m were wiped out by one-off expenses and a goodwill write down charge that left it £18.8m in the red.

A year ago it had edged back into the black but that achievement was clearly not sustainable for the management team and board, including Jones - who owns more than 40 per cent of Expansys.

Exceptionals of £2.6m included £1.1m restructuring costs for redundancies, £900,000 to settle a supplier claim, and £600,000 for two aborted acquisition costs. There was also £17.4m amortisation of goodwill attributed to mobe distie division Data Select Network Solutions (DSNS).

Chairman Bob Wigley, described the year to 30 April as a "difficult one" for the group. Management reacted to the biting economy with more job cuts at the half way stage, and cost cutting to come.

"The retail division has performed badly relative to our expectation for the year and the management team has been working hard to reduce costs in this area," he said.

The retail unit saw sales fall 14 per cent to £70m, with the largest decrease reported in Europe, down 24 per cent to £38.1m. Turnover declined in the US, too; down 14 per cent to £14.5m. The Euro division made an adjusted loss of £800,000, the firm said. Sales in Asia continued to expand, up 24 by nearly a fifth to £17.5m.

During the year the European logistics and customer services operations were outsourced to cut costs, Expansys revealed.

The company issued a profit warning in March after stumping up for restructuring charges, and Catterson added it will "continue to look at ways in which we can increase the efficiency of the retail business".

Not wanting to feel left out, SIM wholesaling arm DSNS was not immune to falling sales either, falling 16 per cent to £20.8m. Sales in the US were up as DSNS set up operations stateside, but fell in Blighty as it exited airtime sales and because network operators changed their revenue share model.

The PJ Media sub - a provider of e-commerce platforms - also reported declining sales, down eleven per cent to £2.4m.

"Profitability reduced as pipeline projects were delayed or cancelled. We have reduced the cost base….[and] are placing a far greater emphasis upon opportunities within emerging markets," said CEO Anthony Catterson.

"We predict further short-term challenges in FY '14, but remain confident that there are strong medium to long term growth opportunities in the international SIM distribution markets, partner commerce services and software solutions for Mobile Network Operators and Mobile Virtual Network Operators," he said. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.