Is Temple & Webster set to give any dividends soon – ASX: TPW?

Wednesday, Jul 25 2018 by

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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Temple & Webster Group Ltd is an online retailer of furniture and homewares. The Company is engaged in selling of third-party produced furniture and homewares to residential and commercial customers. It is also engaged in the sale of lifestyle products. The Company is a holding company of various operating companies. The Company operates through over two brands, including Temple & Webster, which is an online retailer for the home, and Milan Direct, which is an online retailer of furniture. The Milan Direct business sources private label products under the Milan Direct brand. Temple & Webster has a catalogue of approximately 140,000 products. The Company's subsidiaries include Temple & Webster Pty Ltd, Zizo Home Pty Ltd, TPW Group Services Pty Ltd, Milan Direct Group Investments Pty Ltd, Milan Direct Pty Ltd and Milan Direct UK Pty Ltd. more »

ASX Price
A$1.59
Change
-0.3%
Mkt Cap (£m)
98.4
P/E (fwd)
132.1
Yield (fwd)
n/a

ASX Limited is engaged in providing securities exchange and ancillary services, derivative exchange and ancillary services; central counterparty clearing services, and registry, depository, settlement and delivery versus-payment clearing of financial products. The Company's segments include prices and research, market products, trading services, listing and issuer services and education services. Its prices and research services included prices of shares, company information, announcements, dividends, ASX 24 reports, find a broker. Its market products included shares, indices, bonds, hybrid securities, managed funds, warrants, options and index derivatives. Listing and issuer services included clearing and settlement, issuing investment products, trading services, technical services, OTC clearing, ASX collaterals and debt securities. The Company was also focusing on providing online courses, finance seminars, research and surveys, share market game and education centres. more »

ASX Price
A$85.69
Change
0.1%
Mkt Cap (£m)
9,149
P/E (fwd)
32.8
Yield (fwd)
2.7



  Is ASX:TPW fundamentally strong or weak? Find out More »


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