- Online wireless technology retailer Expansys plc warned that recent difficult trading conditions were likely to lead to significantly reduced profits.

In an update on trading in November and December, the company said sales in the US and Asia had grown strongly but it had experienced significantly weaker than expected Christmas trading in the UK and Europe.

'In the UK, weather dented consumer confidence in deliveries from online retailers and, as a result, we saw a material drop in orders after the first week of the most important trading month of the year.

'Increased competition as retailers reacted to adverse weather placed intense pressure on the gross profit margin. In Europe, although sales grew by 12% against the same period last year, this was below expectations.'

CEO Anthony Catterson said Expansys strongly believed in the growth prospects for the business but it was 'disappointing that recent difficult trading conditions are likely to contribute towards a significantly reduced profit expectation'.

Shares fell 1p to 5.25p.

Story provided by