The chief executive of eXpansys has stepped down as the loss-making e-tailer posted drastically improved results.
Roger Butterworth has resigned from the Manchester-based smartphone specialist with immediate effect, after ten years in the hotseat.
Butterworth said he was pleased to be leaving following the release of “significantly improved interim results”. For the six months to 31 October, operating losses fell to £15,000, compared with £2.3m for the previous six months, while revenues fell six per cent sequentially to £20.4m.
Speaking to CRN, Butterworth described the parting of ways as " very, very amicable".
"They have been very good to me and I wish them the best," he continued. " eXpansys is a great company and will be more successful over the next few years than it has been over the last few."
Butterworth claimed that he expected to be back in the e-tail industry towards the end of the year.
"I am definitely going to stay in e-commerce," he said, "but I do not see myself setting up in competition with eXpansys".
The e-tailer, which operates 50 websites in 12 different languages, said its core mobile technology business continued to be “dynamic”.
The rise of the Google Android operating system and the de-coupling of the sale of smartphone handsets from the provision of wireless services have been “good for the group”, it added.
Graham Dawber, chairman of eXpansys, said: “This has been a period of consolidation for the group, following the successful but disruptive major cost reduction programme undertaken over the previous 18 months. I am pleased to report that, operationally, the group is now in better shape than it has ever been with a cost base appropriate to its size.”
In the latter part of last year eXpansys' fortunes began to look up when its share price enjoyed a sudden and dramatic rise. From a low of 2.25p per share on 23 September, it tripled in five days.
At the time, the company issued the following statement: "The company notes the recent share price movement, which has followed recent positive press comment. Whilst the board is satisfied with the progress of the turnaround of the business, the board confirms that it is unaware of any corporate activity which would be responsible for the share price rise."
Having closed yesterday at 8.88p, it is now trading at a robust 9.88p, which gives the firm a market capitalisation of £17.6m.
But Dawber warned against complacency and stressed the importance of keeping a tight rein on expenses. “The market remains uncertain and our operational strategy will be to keep our costs low, our stocks low and to exploit opportunities as they arise," he added.
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