Shares have plunged in one of the share market success stories of the pandemic, online furniture trader Temple & Webster, after shareholders were disappointed by a trading update.
The company, which has benefited from people shopping online for home improvements as they spend more time at home, held its annual general meeting on Wednesday.
Chief executive Mark Coulter outlined progress in the current financial year and said year-to-date revenue was up 138 per cent (from July 1 to October 19).
First quarter EBITDA was $8.6 million, he said, which was more than the EBITDA for the previous financial year.
Yet the figures were not enough for shareholders, who sent the share price down by 16.11 per cent to $11.77 by 1328 AEDT.
Mr Coulter said the company continued to grow in a furniture and homewares retail market worth $15 billion.
“The goods news is that we are growing our market share even as our competitors take online more seriously,” he told investors.
He said this performance was due to increasing benefits of scale as the business became larger.
Temple & Webster also has a trade and commercial division that targets corporate and hospitality customers, and offers design services.
The division grew 68 per cent last financial year.
Director Conrad Yiu, who helped establish the company in 2011, was re-elected after almost 94 per cent of shareholders voted for him.
The proposed pay and incentives for management were also approved.
Temple & Webster in August reported full-year profit increased by 270 per cent to a net profit after tax of $13.9 million.
The share price has improved by 340 per cent since January 1.
The company listed in 2015 and is yet to pay dividends to shareholders.