Not surprised - my daughter brought herself an excellent Android 7" tablet for £40.00 a month or so ago. Fantastic bargain that has given her a lot of pleasure. If it was not pink I might buy one for myself.
If someone can sell these at a profit in the UK (20% VAT) then they must be pretty cheap to make.
Good riddance. There are plenty of Android 4.0 tablets out there that are as cheap and are powerful enough.