Online VAR Buy IT Direct claims to be "satisfied" with its performance in its 2012 fiscal year, despite sales declining 8.6 per cent and operating profit being more than cut in half.
According to documents recently filed with Companies House, the firm, whose brands include Laptops Direct and Servers Direct, saw sales for the year to 31 March 2012 drop 8.6 per cent to £69.8m. Operating profit stood at £453,951, compared with more than £1.1m in the prior year. This equates to a fall in margins from 1.5 per cent to 0.65 per cent.
The fall in sales was particularly sharp outside of the UK, where revenue dropped from £4.5m in FY11 to £2.33m. Turnover in this country fell by more about £4.3m to £67.45m.
Despite the top-line decline, average monthly staff numbers grew from 139 to 144 over the course of the year, with sales headcount swelling from 63 to 77. Management ranks also grew from five to seven, but the number of admin staff dropped from 62 to 50.
In the directors' report for the year, the West Yorkshire-based firm claims that the numbers represent a decent performance in difficult conditions.
"Given the continuing tough economic climate in general over the past 12 months and the market sector in which the business operates, the directors are satisfied with the performance of the business," says the report. "The company continues to look for new business opportunities in both its core market and affiliated sectors."
Founded in 1999, Buy IT Direct's flagship operation remains its laptop e-tailer. In subsequent years it has expanded into servers, white goods, TVs, furniture and cameras. It sells to consumers and businesses, and also supplies white-label products to high street giants including Debenhams and BHS. In addition to its online sales sites, it also runs an office and showroom in Huddersfield.
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