E-Net Computers, the Edinburgh company owned by entrepreneur and online Dragons’ Den star Shaf Rasul, has racked up another £1 million loss as it undertakes a major restructuring that will see it cease to have any trading activities.
Newly-filed accounts reveal that the firm made a loss before tax of just under £990,000 in the year to 31 March, compared with a deficit of £960,000 a year earlier. Turnover fell to just £5.1m from almost £13m in 2011/12.
Rasul has always been clear that E-Net, which grew spectacularly after it was established in 1999, would decline as the price of its core product, blank CDs and DVDs, fell in the UK and Europe. At its peak in 2004-5, sales reached £67.2m while Rasul’s wealth was estimated to be in the region of £82m.
Writing in the accounts, the directors note that in order to “address the current economic climate the group has undertaken significant restructuring and resizing of its operations”.
They confirmed the disposal of the firm’s cash and carry business, relocation to smaller office premises, which have a “significantly lower cost base”, and the elimination of the group’s overdraft facilities.
Since the year end, further restructuring has seen the transfer of excess stock and blank optical media operations to affiliated companies.
The directors note: “In addition, the company intends to transfer its investment property to a related party and work is currently in progress to facilitate this. As a result… the company will cease to have any trading activities.
“It will, however, continue to retain full interest in its related party property portfolios.”
The latest Companies House documents also show E-Net Computers’ headcount falling from 81 to 27.