Join

Enter Details

Comment on stories, receive email newsletters & alerts.

@
This is your permanent identity for Business Insider Australia
Your email must be valid for account activation
Minimum of 8 standard keyboard characters

Subscribe

Email newsletters but will contain a brief summary of our top stories and news alerts.

Forgotten Password

Enter Details


Back to log in

Shoply posts another big loss and goes into a trading halt

David Ramos/Getty Images

Pure play online retailer Shoply has gone into a trading halt after it posted another loss, this time $1.69 million for the six months to December.

The company, with its suite of online stores, says it will be making an announcement about a “material transaction”.

Shoply says the half year loss, about 50% higher than at the same time last hear, reflects the competitive nature of online shopping.

However, revenue was up 52.1% to $12.7 million, helped by the acquisition this time last year of pioneering Australian IT website eStore.com.au which at that time had about $7 million in annual revenue.

Shoply’s online retail sites include Your Home Depot, Eljo, Ezy Direct, OHKI, Wow Baby and Toy Store.

Total online sales are estimated at $17.6 billion in Australia and growing at 5.7%, according to the NAB.

Shoply is in the middle of a restructure aimed at shifting focus from revenue growth to a business model underpinned by a lower costs and higher gross profit margins.

The company has reduced the use of external service providers and cut inventory by about $500,000.

Shoply shares last changed hands at $0.003.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.