DRL grows sales to £89m despite downturn

ONLINE white goods retailer DRL has increased its turnover by 10% to £89m despite tough trading conditions which saw its suppliers increase their costs.

The Bolton-based company, which employs 217 staff, also won the contracts to run white goods web sites for Marks and Spencer, House of Fraser and Debenhams in the year to the end of March 2009.

It saw its gross profit increase to £11.5m in 2008/09 up from £9.53m on the previous year.

But its profit before tax dipped slightly to £501,089 in 2009 from £502,600 in 2008.

DRL runs appliancesonline.co.uk – which it describes as the UK’s largest online appliance retailer – offering 4,000 products at consistently cheaper prices than high street retailers.

A director’s report states: “The business continued to grow in 2008/09 in a period when the white goods industry faced significant challenges.

“The principal issues were the UK economy and the weakness of the Euro which forced suppliers to increase prices into DRL.”

The report also states that the company has now bought one of its distribution companies which is expected to bring further financial benefits.

The statement reads: “In June 2009, DRL Holdings Ltd (parent of DRL Limited) completed the purchase of Expert Logistics Limited – the incumbent provider of distribution services to DRL Limited.

“This will allow the further development of the delivery proposition of Expert which will further the services offered by DRL Limited to its end consumer.”

By the end of March 2009, DRL’s cash balances had increased to £2,290,713 from £2,195,592 – an increase of £95,121.

The report adds: “The company has continued to trade profitably in the current economic circumstances and has no significant borrowings.

“Future growth in the business is expected to be funded through trading and working capital management and the cash resources available are expected to be more than adequate for the company for the foreseeable future.”