| 2009 | 2008 | Growth reported |
Growth (constant exchange) |
|
|---|---|---|---|---|
| Revenue | £339.3m | £358.0m | (5.2)% | (6.7)%(1) |
| Gross margin | 51.8% | 53.1% | ||
| Operating costs % of revenue |
(24.4)% | (24.9)% | ||
| Contribution | £93.1m | £100.9m | (7.7)% | (7.7)% |
| Contribution % of revenue |
27.4% | 28.2% |
- (1) Underlying revenue growth, adjusting for trading days
Underlying revenue declined by 6.7% with sales slowing during the year. The business has pursued sales initiatives across a number of different areas. These include the introduction of the electronics production packaging offer, which is meeting a clear customer need, and continued expansion of the UK’s electronics sales support with the opening of a new electronics sales office. Other initiatives have included the increasing use of web based sales promotions, large customer wins and increased sales penetration of large accounts and own brand promotions.
e‑Commerce revenue increased by around 10% and e‑Commerce share of revenue increased from 37% to 43% year on year, exiting the year at 47%.
Gross margin reduced by around 1.3% points year on year as more customer promotions and discounts were used to drive sales and large customers outperformed the higher margin smaller customers. Gross margin was stable across the two half years as selling price changes were made in the October catalogue and promotions were further targeted through the year.
Costs reduced by around 7% during the year as action was taken through continuous improvement and a variety of cost saving initiatives.
The business has continued to provide excellent customer service which, in the case of our customer contact centre, has been recognised with their winning of the 2008 UK National Customer Service Awards for the best Large Customer Service Contact Centre of the Year.
