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.
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