The Channel logo

News

By | Paul Kunert 21st March 2013 10:56

Dragons' Den badboy's Expansys burns sales, profits up in smoke

Peter Jones' tech bazaar tells of wobbly six months

Marlow-based online smartmobe dealer Expansys - owned by Dragons' Den moneybags Peter Jones - issued a profit warning this morning citing weaker-than-expected trading conditions.

The AIM-listed wireless tech web retailer, which also distributes SIM cards for mobe networks and operates ecommerce and other software projects on behalf of mobile operators, slipped out a brief statement for shareholders ahead of its year-end financial report due on 30 April.

"Trading to date in the second half of the financial year has been below our expectations with the result that we expect profit for the current year to be substantially below market estimates," the company admitted.

The business briefly returned to profit in fiscal 2012 - it made a profit before tax of £800,000 - but things took a turn for the worse this fiscal year, leading to a £2.3m loss at the halfway point.

This was largely due to one-off charges of £2.3m to pay for substantial restructuring in its European retail business as Expansys tried to offset a £1m year-on-year fall in sales for H1.

In today's statement, Expansys said it had "completed the cost savings forecast in the retail business and will enter the next financial year with a lower cost base". The mobile devices and networks flogger said this gives it an "appropriate structure to support growth".

However, the firm said that a wider review is now taking place "in order to accelerate [its] objective of becoming an end-to-end solutions provider to Mobile Network Operators, Mobile Virtual Network Operators and OEMs".

"This is not currently envisaged to involve a sale of the company," Expansys added.

Jones is a non-exec deputy chairman at Expansys and a majority shareholder with 41.63 per cent. ®

comment icon Read 18 comments on this article alert Send corrections

Opinion

Houses of Parliament in night-time

Andrew Orlowski

Come on everybody, let's upload all our stuff into Government by Cloud
Joe Tucci EMC
frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties
Columns of coins in the cloud

Michael Cote

Anything that simple to use has got to be complex to set up

Features

Alistair Darling and Alex Salmond debate Scottish independence
You keep the call centres, Hamish, we'll take the banks
Internet of Things
Everyone loves those Things, just not on each others' terms
No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever