Shoply posts another big loss and goes into a trading halt

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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 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.

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