Trading Statement

RNS Number : 8989H

EXPANSYS plc

06 June 2011

 

Embargoed: 0700hrs 6 June 2011

EXPANSYS plc

("EXPANSYS" or the "Group")

Trading Statement

EXPANSYS (AIM: XPS), a leading global online retailer of consumer wireless technology and provider of mobile network and eCommerce services and solutions, announces that its results for the year ended 30 April 2011 will be released on 26 July 2011 and provides the following trading update.

The year to 30 April 2011 has seen some significant advances: following a successful fund-raising, we made two acquisitions, re-launched the EXPANSYS online retail brand and websites and strengthened our teams in the US and Asia with the appointment of new regional leaders.  We have also recently further strengthened the executive team with the appointment of a new CFO, as well as improving the quality of our commercial team.

The Group expects to report profit before tax of approximately £3.4 million (as adjusted for amortisation of intangibles, the charge for share options and exceptional items) for the year ended 30 April 2011. Although below expectations this compares with a loss of £0.2m in the prior year and gives us a firm foundation to address the opportunities for growth across the business in the current year. Cash balances at the year end were approximately £5m.

On a like for like basis, EXPANSYS retail revenues are expected to show growth of circa 30% over the previous year with all regions reporting sales growth for the 12 month period, led by significant growth in Asia and the US. As noted in the Group's statement in January this year, the UK consumer environment has been challenging; these trading conditions continue and the resulting competitive retail environment in which the Group is operating  places margins under pressure.  However, the Board is pleased to report that both Data Select Network Solutions Limited ('DSNS') and PJ Media Limited ('PJ Media') generated stronger profits for the year than forecast in January, and have contributed strongly to Group performance since their acquisition in July 2010.

Outlook

The trading environment for our business remains challenging, especially in the UK and Europe, and we expect this to continue through the short to medium term.

However, the Group is prioritising resource and investing in what it believes to be considerable opportunities in the US and Asia and is continuing to position the business for growth in these markets. Margins for the Group remain a key focus, with the benefit of improved purchasing, efficiencies from centralising our operations and improved cost controls. In addition the Board continues to review strategic acquisition opportunities.

Anthony Catterson, CEO of EXPANSYS, commented:

"While the consumer environment in our key markets remains challenging and competition intense, EXPANSYS is focussed 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."

For further information please contact:

EXPANSYS plc Anthony Catterson, CEO Chris Ogle, CFO	Via M: Communications
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

About EXPANSYS

EXPANSYS (AIM: XPS) is a global online consumer electronics retailer, operating directly in 50 countries with a vast range of products, and a focused approach to service and value for its customers. In 2010 the Group acquired Data Select Network Solutions, the market leading B2B SIM card distributor selling products on behalf of all the UK's major network operators and MVNOs. The Group also includes PJ Media, an eCommerce and web services business with expertise in the multi-channel telecommunications sector, and a number of large international blue chip clients.

 

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