StockMarketWire.com - EXPANSYS reports total turnover for the Group in the period was £45.6 million representing a decrease of 2% compared to the same period last year (H1 2011: £46.6 million).

The profit before tax as adjusted for the share-based payment, foreign exchange and exceptional items was £0.4 million (2011: £1.6 million). Share based payments totalled £0.2 million and exceptional items totalled £2.3 million with more details below. The loss before tax for the period was £2.1 million (H1 2011: profit of £1.6 million).

Cash at the end of October 2012 was £2.3 million (H1 2011: £4.0 million). Cash has reduced primarily due to the exceptional costs incurred outlined below.

The company has also made necessary investments in infrastructure to support the retail division at a cost of £0.4 million, as well as investing working capital in growing the DSNS business in the USA.

Bob Wigley, Chairman of EXPANSYS, commented: "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.

"We continue to experience headwinds in the retail business, but believe the realignment of our cost base will have a positive impact and bring the business increased profitability in the short to medium term. Our DSNS business continues to win new customers, but the predicted network terms changes are having an effect upon profitability.

"We continue to make good progress within our PJ Media multi-channel solution business and have signed several key strategic contract wins that will benefit the Group moving forward."




At 9:51am: [LON:XPS] share price was -0.4p at 1.03p



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