�1.1m losses ‘mask encouraging performance’ at Warehouse Express Group

The company, based on the Sweet Briar Industrial Estate in Norwich, sells photographic and optical equipment and accessories, mainly through the internet and via mail order.

Accounts for the year ended June 30 2010 this week showed losses before tax of �1.1m after a similar loss the previous year.

But a report by directors published in the accounts said the figures reflected 'a number of items which mask an otherwise encouraging trading performance'.

The report said the company had seen exceptional items costs of �241,000, mainly related to a refinancing in October 2009 in which an additional �1.5m was injected in the business by main shareholder, Barclays Unquoted Investments.

The directors' report in the accounts said earnings before interest, tax, depreciation and amortisation (EBITDA) was �287,000 before exceptional costs, a 'significant improvement' over the previous year's trading loss of �1.25m.

The firm reported an operating loss of �674,000, down from losses of about �2m in 2008/09.

The report said: 'We are obliged to report the results of the business in accordance with UK accounting standards, however the directors believe the way the results have to be presented ... do not give a clear picture of the group's financial or commercial performance.'

Turnover at the company, which was founded in 1997, was �44.3m, about �70,000 up on the previous year.

The average number of staff during the last year was 89, down slightly from 92 in 2008/09.

In addition to the �1.5m investment, the company renegotiated its bank facilities and provided a flexible working capital facility through to September 30 2012.

The report added: 'The company has continued to trade well since June 30 2010 and has seen an increase in trading profitability in the six months to December 31 2010 remaining cash positive throughout the period.

'The directors are therefore satisfied that the group is a going concern.'