By Phil Boeyen, ShareChat Business News Editor
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Tuesday 4th December 2001 |
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For the six months ended September the company lost $293,000, a 44% improvement on last year's interim loss of $522,000. Sales were $357,000 compared to last year's figure of $226,000.
Managing director, Bronwen Evans, says the company has been restructured significantly during the first six months to decrease the company's cost base, including relocating all operations to Wellington.
"This has enhanced the alignment with Gordon Ritson's Queensgate Pharmacy and is giving rise to ongoing cost efficiencies as of the second half of this year.
"Whilst the company will still make a loss in the year to the end of March next year it will not be near the same magnitude as last year and it should be noted that most of that loss has occurred in the first half. The board is forecasting a loss of around $475,000 for the full year."
Ms Evans says sales have been increasing on a monthly basis, with orders per month up 137% on last year and the average order now around $118 compared to $88 previously.
"It should be noted that as yet the pharmacy products have not been loaded onto the web site and we expect this to help increase sales further in the last quarter of this financial year."
The company is planning to add over 3,000 new product lines by retailing pharmacy products, with the service due to be up and running by the end of next month.
It will also begin offering a digital photo development service, www.photodirect.co.nz, which will allow customers to download digital camera files to be printed onto photographic paper and couriered to them, and plans to further expand jewellery and lingerie lines.
"In addition the board, especially through director, Gordon Ritson, is working to position Beauty Direst to be ready for any de-regulation within the pharmacy industry, which may come about from the formation of the new 'Medicines Act'."
Ms Evans says her immediate focus is to get the web operation to break-even and remove the pressure imposed from directors and shareholders alike.
"Once breakeven is achieved the web business will then be able to grow steadily without undue pressure. I am as confident as ever that the web business will become a major player in the market niche and certainly the major on-line player."
Ms Evans says the company's share price has risen significantly since the entry of Gordon Ritson and the board believes there is now a better appreciation of the company's future plans.
"There is also a greater realisation that whilst the company is losing decreasing amounts of money, it is still cash rich, has no debt, is not going broke and is not in the parlous state of other e-commerce companies that were not as prudent with their funds during the e-commerce boom days."
Beauty Direct shares were floated at 25 cents but were sold down on the strength of the anti-tech sentiment and problems the company had expanding into the Australian market.
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