Trading Statement

RNS Number : 1445Z

EXPANSYS plc

10 January 2011

 

Embargoed for release at 07.00 hours, 10 January 2011

EXPANSYS plc

("EXPANSYS" or the "Group")

Trading Statement

EXPANSYS plc, a leading global online retailer of wireless technology and provider of mobile network solutions, updates on trading during November and December and the outlook for the financial year.  While sales in this period in the US and Asia have grown strongly, the Group has experienced significantly weaker than expected Christmas trading in the UK and Europe.

Review of operations - retail business

In the UK, weather dented consumer confidence in deliveries from online retailers and, as a result, we saw a material drop in orders after the first week of the most important trading month of the year. Increased competition as retailers reacted to adverse weather placed intense pressure on the gross profit margin. In Europe, although sales grew by 12% against the same period last year, this was below expectations.

In the USA, we saw good growth in sales as a result of proposition and conversion improvements recording a 48% sales improvement against the same period last year. In Asia sales were up 195% against the same period last year, driven mainly by our developing business in Japan.

Review of operations - DSNS

While trading is broadly in line with expectations, recent competitive pressures and early data for November and December suggest a potentially more challenging trading environment going forward.

Anthony Catterson, Chief Executive, said:

"Whilst retail sales are ahead of last year, EXPANSYS has not been immune to the impact of recent weather on customers' confidence in Christmas deliveries from online retailers and the ensuing intense competition in our most important trading period. We believe strongly in the growth prospects for the business, however it is disappointing that recent difficult trading conditions are likely to contribute towards a significantly reduced profit expectation."

For further information, please contact:

EXPANSYS plc Anthony Catterson, CEO	Tel: [phone] [e-mail]
Cenkos Securities Stephen Keys or Camilla Hume	Tel: [phone] [e-mail] / [e-mail]
M:Communications Nick Miles or Ben Simons	Tel  [phone] [e-mail] / [e-mail]
Investor relations website	www.EXPANSYS.plc.uk

 

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