Business
Preliminary Results 2009
Preliminary Results 2009.
About this update from Xps Pensions Group Plc
[{"type":"text","content":"\n RNS Number : 1334W eXpansys Plc 23 July 2009 \n \nPRELIMINARY RESULTS 2009\n\neXpansys plc ('eXpansys' or the 'Group'), a leading global online retailer of wireless technology, announces its preliminary results for the year ended 30 April 2009.\n\nKey points\n\n\n\n\n\n\n\n\n\n\n\n\nSuccessful implementation of major review and improvement programme, following the global economic downturn and resulting unprecedented turbulent trading conditions\n\n\n\n\n\n\n\n\n\n\n\n\nBusiness risk reduced, cost base challenged and management of working capital improved:\n\n\n\n\n\n\n\n\n-\n\n\nOperations rationalised and headcount reduced by 86 - employee related expenses lowered by £122,000 per month and operational expenses by £40,000 per month\n\n\n\n\n\n\n\n\n-\n\n\n£1.5 million UK bank debt repaid in full, reducing monthly interest charge by £15,000\n\n\n\n\n\n\n\n\n-\n\n\nCash inflow from operating activities of £1.0 million (2008: outflow £0.5 million)\n\n\n\n\n\n\n\n\n-\n\n\nSignificant reduction in inventory - down £5.0 million to £1.5 million\n\n\n\n\n\n\n\n\n-\n\n\nDebtors reduced by £3.6 million to £2.1 million\n\n\n\n\n\n\n\n\n\n\n\n\n£1.92 million additional working capital raised via placing with Virtual Phone Shop Limited ('VPS'), a company controlled by Peter Jones\n\n\n\n\n\n\n\n\n\n\n\n\nGroup strengthened to trade through difficult economic environment \n\n\n\n\n\n\n\n\n\n\n\n\nWell positioned to benefit from upturn in discretionary purchases in medium term\n\n\n\n\n\n\nRoger Butterworth, Chief Executive, said: 'The last year was undoubtedly a very challenging time for the Group. Our products have always been discretionary spend items and the global economic downturn has hit Group sales hard. The Board, however, reacted swiftly and the resulting review and overhaul of Group operations has strengthened eXpansys significantly and created a leaner business, which is better able to handle harsh trading conditions and well positioned to take advantage of any upturn.\n \n'The reduction in our sales was exacerbated by manufacturers withholding new product releases - our lifeblood - for better times. New products such as the Nokia N97, HTC Hero and Apple i-Phone 3GS are now beginning to come to market and I am pleased to report that eXpansys has benefited from these. Whilst we remain cauti...