Temple & Webster’s (ASX: TPW) Chief Executive Officer, Mr. Coulter had warned investors not to expect dividends in the foreseeable future, stating that the online furniture retailer will continue investing, while the company is finally making a profit. The EBITDA for Temple & Webster was $300,000 in the half year ending June, which was in line with its promise to reach profitability during 2018. The company achieved this following the 25 percent increase in active customer numbers and a 24 percent rise in revenue.

In the June quarter, the company completed the year with a cash balance of $9.9 million and had net cash flows of $600,000. Mr. Coulter also said that the cost savings and revenue growth were sustainable, and he expected that in 2019, EBITDA will be positive for Temple & Webster. However, before the company could consider start paying dividends it needs to make further investments, as the company was launched in 2011 and floated in 2016.

He also stated, that the company is a market leader in a very nascent industry, although only 5 percent of furniture and homewares are sold online today, there is decades of growth ahead as it is still a very young industry. The company should be reinvesting to ensure the brand of the future in the current market dynamics and as a market leader. TPW share rose 22 percent to 77 cents in last three months, and this can be compared to their issue price of above $1 as at late 2015; while the stock has risen again more than threefold in past 12 months. The company is growing its market share and is about to launch its own fleet of branded delivery vans to fulfil bulky orders and enter categories like lighting, rugs and soft furnishings, as the company aims to improve customer service around delivery specially the bulky items but maintains that they won’t be throwing a lot of cash in it.

Temple & Webster Group Ltd. (ASX: TPW) traded at a market price of $0.770 (as at market open on July 25, 2018) and has seen a daily price change of $0.010 and a percentage change or rise of 1.316% as at July 24, 2018. The company is a consumer discretionary stock and deals in online retail. The EPS for the company is -$0.032 AUD and the market capitalization…

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