Grays eCommerce Group expects to start paying dividends later this financial year after restructuring as a pure online auction site.
The company told the AGM today to expect to fully franked dividends, at a payout ratio of around 40% of net profit after tax, following the first half results.
A short time ago, Grays shares were down 3% to $1.20.
Grays has sold off its fixed price retail business to concentrate on online auctions.
Wine is its strongest category, selling 55,000 cases a month, or about 2% of all bottled wine in Australia.
The company grew members by 10% to 2.17 million in 2016.
Grays posted a $20.02 million loss for the year but revenue from our continuing operations was up 14% to $125 million.
CEO Mark Bayliss says first half in EBITDA (earnings before interest, taxes, depreciation and amortisation) will be below the same six months in 2016.
However, he expects solid growth for the full financial year.
“Grays has a very strong position in B2B online auctions, and the transformation that we have successfully undertaken ensures we play to our key strengths that provide us with a competitive advantage in a market with attractive fundamentals,” he says.