Profits slide at online retailer DABS.com

DABS.com, the online retailing subsidiary of telecoms giant BT saw profits fall from £4.7m to £884,000 as competition drove down prices in the entertainment and home technology sector.

The company, based in Westhoughton, Bolton, sells DVD players, High Definition televisions, laptop computers, games, DVDs and computer accessories, saw sales fall 23% to £148.9m in the year to the end of March.

Newly-filed accounts at Companies House also show that Dabs – which was acquired by BT in April 2006 – responded to the fall in sales and profits by streamlining the business, a move which saw staff levels cut by 16% from 293 to 247.

In a statement accompanying the accounts finance director Neil Catto says: “Despite challenging marrket and economic conditions the business has remaiend profitable and stable. Over the period the business took the opportunity to restructure certain departments and processes to ensure the organisation was well-placed to progress well during the coming year.

“The group’s sound balance sheet and excellent cash poostion put it in a good position to make the most of further opportunities in the the market that arise overt the coming year.”

Referring to the cuts in Dabs’ workforce, Mr Catto said: “The decrease in resource was partly in response to tough economic conditions (which led to decreased volumes in certain areas) as well as improved efficiency and automation of processes as part of an ongoing programme to make the business as cost efficient as possible.”

Dabs said it could see no change to “aggressive” pricing in the sector.