Revenue at the UK arm of Hewlett-Packard (HP) slipped further away from the £1bn mark during its latest financial year while a range of cost reduction measures boosted its profit.
According to newly-filed accounts with Companies House, the division posted a revenue of £948.2m for the year to October 31, 2023, down from £979.5m in the 12 months before.
However, its pre-tax profit increased in the period from £15.4m to £26.6m.
HP hopes cost cuts will boost future earnings
A statement signed off by the board said: “Revenue decreased by three per cent during the year mainly as a result of softened demand.
“The company is continuing to launch certain initiatives that aim to generate revenue in future years, improving its service delivery for higher quality and lower cost.”
The business added that the rise in its pre-tax profit was mainly as a result of higher interest income.
HP added: “In 2023 the company continued with cost reduction programs that the directors believe will benefit the company in the future.
“The directors recognise that achieving the balance of long-term and short-term objectives is key to future profitability.
“This profitability allows the company to reinvest in new and emerging business opportunities and is highly correlated to generating cash which brings more flexibility to the business at a lower cost.”
The wider US-headquartered group reported a net revenue of $53.7bn for the year, down 14.6 per cent compared to the prior 12 months.
At the time, Enrique Lores, HP president and CEO, said: “2023 was a year of steady progress.
“We executed well in a tough market and innovated in our key growth areas to finish the year with good momentum.
“Our future ready plan is positioning us well to capitalise on attractive opportunities across our portfolio and deliver long-term sustainable growth.”