The year 2016 has been significant for the business as a whole. We went through phases of development in all areas from sourcing to logistics and expanded our reach to far east and South American markets. Cross border trade and export remains to be at top of agenda over the next 2 quarters.
When we enter the year 2017 our greatest achievement is the automation of 90% of work . Catalogue management and PIM has been fully outsourced. Migrated from hosted ecommerce to a more stable and reliable platform built on dedicated servers powered by magento. A stronger emphasis will be given to UX design and graphics as we are in the process of turning our attention to end user customer.
Datafeeds has been optimised for better conversion with proven results. Based on analytical data from google alone cost per acquisition has gone down and return on investment has increased significantly. Smart filtering of product groups in advertising has played a big role in reducing marketing costs.
Entered into partnership with more brands including Lexmark, OKI, Canon, HP Enterprise, Dell and many more. The ever growing portfolio of approved brands requires more attention and we are hoping to hire dedicated account managers in the near future to manage manufacturer accounts.
Year on year revenue continues to grow. There has been a steady rise in turnover compared to 2015. Gross profit and net profit margins remains steady throughout the year despite fluctuations in price across European markets. Full figures will be analysed after the next annual returns. Net margins may go down this year due to increased commission payouts and competition however increased sales revenue will compensate for this assuming our back end developments will be completed on time. The key objective would be to reduce spend per GBP sale.
The increase in sales and continued growth signals stronger financial performance this year. Another key thing to note is that the fixed asset levels have stayed relatively same as they were last year. This is a good indicator
Profitability improved significantly than debt which is a positive result. Therefore borrowing doesn’t pose a risk at the moment. In order to prevent a fall in net margin debts need to reduced or kept at the same levels as it is now atleast for the next 1 year.
While it’s still too early to make any analysis about the potential impact on trade following the withdrawal of UK from European union we anticipate stronger sales opportunities in Europe assuming a tariff free access will be granted for IT products. No forecasts are available from the distributors operating across Europe including UK. As we are in the process of expanding office locations to Berlin impact on purchase order from continental Europe will be minimal.
Full report due in March