Temple & Webster shares have hit an all-time high after the the online furniture and homewares retailer turned its first profit and said its full-year revenue rose 41 per cent to $101.6 million.
The company had unaudited earnings before interest, tax, depreciation and amortisation of $1.1 million for the 12 months to June 30, compared to a $700,000 earnings loss the previous year.
“It’s been a good year, we said we would deliver first year profit in FY19, and we did,” Temple & Webster chief executive Mark Coulter told AAP.
“We crossed the magic $100 million mark.”
Chief financial officer Mark Tayler said the company had years of accumulated tax losses to offset earnings so did not yet have a net profit after tax figure to announce.
But he noted the company ended its financial year with $13.5 million in cash and no debt, up from $9.9 million at the start of the year.
At 1353 AEST, Temple & Webster shares were up seven per cent to $1.76.
RBC Capital Markets’ analyst Tim Piper, who has an outperform rating on Temper & Webster shares, called the results in line with expectations.
“We forecast continued strong growth and expect further market share gains over the medium term,” he wrote.
Temple & Webster anticipates plenty of room to grow as just 4.4 per cent of the $13.9 billion Australian furniture and homewares market has migrated online, compared to 14.8 per cent in the UK and 14.9 per cent in the US, according to the company.
Mr Coulter said millennials were ageing into the company’s prime demographic, over-35-year-old furniture buyers.
Only a third of Australians have even heard of Temple & Webster, even though it is the market leader, he said.
For the year ahead Temple & Webster plans to keep expanding its product offerings with exclusive art, homewares and manchester; release a mobile app by the end of the year; add personalisation to its website; and grow its business-to-business division aimed mostly at the hospitality sector.
“We’re pretty excited about the year,” Mr Coulter said.