Strong start to new year pleases market

TEMPLE & Webster’s net profit growth has flatlined as the furniture and home furnishings retailer bolstered its operations to take advantage of the rising popularity of online shopping.

Net profit rose 0.3 per cent to nearly $14m for the year ended June 30 as the group accelerated its technology investment, compared with growth of almost 270 per cent last year.

However, Temple & Webster, whose chief executive is Mark Coulter (inset) believes its pre-tax performance is a better indication of the retailer’s growth.

Underlying earnings more than doubled to $20.5m from $8.5m, fuelled by an 85 per cent jump in revenue to a record $326m as consumers flocked to online shopping through the Covid-19 pandemic. The retailer said the new financial year has started strongly, with year on year revenue growth of 49 per cent.

Its shares rallied 10.6 per cent to $14.34 on Monday.