Bennetts leave Steve at Warehouse

Software Warehouse has expanded rapidly during the past 12 months, but failed to translate a 68 per cent rise in sales into increased profits.

The retailer's accounts for the fiscal year ended 31 March showed revenues of #64.3 million compared to #38.1 million for 1997. But net profits were down 44 per cent to #588,251, eroded largely by a significant increase in administrative expenses which swallowed more than 90 per cent of gross earnings.

The upturn in expenses was thought to be the result of managing the recently established Australian division of Software Warehouse and the additional costs associated with the retailer's disappointing attempt to diversify into the hardware market.

The annual report also revealed the retail giant is no longer a family-run business. Chairman and managing director Steve Bennett's brother John, 23, once hailed as one of Britain's youngest multimillionaire businessmen, resigned as a director on 3 July. The previous week, their father, 58-year-old Cliff Bennett, resigned his position on the board. Their mother, Edwardina Bennett, who was company secretary, also left the retailer on 26 June.

While industry sources speculated about a family feud, the Bennetts insisted this was not the case. John Bennett, who fulfilled a number of roles at the company, most recently managing director of the hardware manufacturing arm, left last year to study commercial law at King's College.

Speaking from the family home in Birmingham, Cliff Bennett said: 'There has been no falling out. The simple explanation is I am getting a little long in the tooth and want to leave the hard work to Steve while I dedicate more time to my golf.'

Steve Bennett said: 'I'm now the only Bennett left in the company - and that's just the way I like it.'