Expansys has admitted a 'difficult' start to its latest financial year, with it making pre-tax losses of £2.1m as it struggled in Europe.
The losses, for the six months to 31 October, were down on the £800,000 profit it posted during the same period last year. Sales were also slightly down on 2011, from £46.6m to £45.6m.
The e-commerce company said it was restructuring in a bid to turn around its fortunes but this was also hitting the results. Cash fell from £4.0m last year to £2.3m. It was also hit by exceptional charges of £2.3m, which related to the restructure.
Bob Wigley, chairman of Expansys, said: 'The first half of the year has been more challenging than expected, chiefly as a result of a worsening performance in Europe as we restructure the business to an appropriate scale in line with the market opportunity and difficult economic climate.
He added: 'The group has spent a large amount of time this year restructuring underperforming areas of the business, and while not complete, we are already seeing operational improvements that are necessary to support the many strategic opportunities we have. However, due to the underperformance of the retail business chiefly in Europe, we expect full year performance to be below current market expectations.'
Author: Graeme Neill