Expansys lowers earnings expectations
ONLINE smartphones retailer Expansys has said that it expects to return to profit for the year to April 30, although it warned that the amount it makes will be below market expectations.
The Manchester-based firm said that pre-tax profits before amortisation and other exceptionals is likely to be around £3.4m, compared with a £200,000 loss last year.
The company argued that it has undergone “significant advances” during its last financial year, including a successful fundraising, two acquisitions and a relaunch of its own brand and websites.
Like-for-like sales are likely to be 30% higher than in the previous year, driven by growth in sales to Asia and the US. However, it added that the UK market remained weak, although recent acquisitions PJ Media and Data Select Networks had “contributed strongly” since being purchased by the group in July last year.
Chief executive Anthony Catterson said: “While the consumer environment in our key markets remains challenging and competition intense, Expansys is focused on growing core profitability while laying the foundations for the significant growth opportunities its diverse business models and global coverage present.
“DSNS and PJ Media have exceeded recent forecasts, while Expansys’ online retail business is taking longer to improve than we originally expected. We expect our next financial year to be one of substantial progress.”
Dragons’ Den star Peter Jones is now the major shareholder in Expansys, which is based at Manchester Science Park.
