Online cosmetics retailer slows its losses

Online cosmetics shop Beauty Direct posted a half year loss of $293,000, a 44 per cent improvement on the same period a year ago.

The result for the six months ended September was on sales revenue of $357,000, up from $226,000 last year.

Beauty Direct founder Bronwen Evans said the company was forecast to make a full year loss, but revenue and underlying profit continued to grow.

"While the company will still make a loss in the year to March, 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 to September. The board is forecasting a loss of around $475,000 for the full year."

Beauty Direct moved from Auckland to Wellington to be closer to the business of 27 per cent owner Gordon Ritson, who owns Queensgate Pharmacy in Lower Hutt.

"Since Gordon Ritson has bought in to the company, Beauty Direct's share price has remained fairly constant at around 10c, with significant volumes being traded at times," said Bronwen Evans.

"The company has no debt other than current creditors and has cash and other net current assets exceeding $2.4 million."

Beauty Direct planned to sell pharmacy products online alongside its beauty products through its connection with Mr Ritson.

"During the second half of last year we actively sought to align the company and website with a pharmacy to provide full pharmacy lines, including pharmacy-only medicines.

"Beauty Direct now plans to add more than 3000 new product lines by introducing the full pharmacy lines, by the end of January."

The average order value rose from $88 for the first six months of last year to $118.

Beauty Direct shares last traded on November 30 at 9c, compared to a year high of 15c and a low of 5.8c. They listed at 25c.

- NZPA