Another quarter of record sales revenue Shoply Limited (ASX:...

Another quarter of record sales revenue Shoply Limited (ASX: SHP) is pleased to present its consolidated Quarterly Cash Flow Report for the quarter ended 30 June 2015. Key highlights include:  Record quarterly cash receipts of $6.0 million for the quarter, up 28% on previous quarter  Shoply exceeded forecast annual revenue of $18m, up 990% on FY14
 Positive operating cash flow of $0.2 million
 Integration of eStore acquisition and operational consolidation
 Cash at bank at 30 June of $2.4 million

Commenting on the result, Shoply CEO Simon Crean said,“We are extremely pleased to announce that Shoply achieved another record quarter of sales revenue, generating $6.0 million and surpassing our revenue forecast of $18 million for the 2015 financial year.
In doing so, the Company also produced a positive operating cash flow of $0.2 million over the quarter.
“In addition, this quarter saw gross margin improvements from eStore and Warcom synergies, and cost reductions resulting from a consolidation in occupancy costs.”
Strong sales momentum continuing in conjunction with operational efficiencies Increased end of financial year spending generated strong trading across the Shoply group for the quarter.
Cash receipts from customers were up 28 per cent on the previous quarter to $6.0 million (Q3: $4.2 million).

In addition, overall gross margin improvement was driven by synergies between the eStore and Warcom stores and further investment in relationships with supplier partners.
Shoply generated revenues of $18.5 million (unaudited) in the 2015 financial year.
eStore integration update
The integration of eStore into the Shoply group is now largely complete.
Over the quarter, supplier synergies and negotiations drove operational efficiencies within the business.
This was further enhanced through the consolidation of eStore, Warcom and the Shoply corporate operations into a single location providing annual savings in occupancy costs for the Company.


Mr Lorenzo Coppa vended eStore into the Shoply group in March this year and joined the Shoply Board in June. Mr Coppa has 25 years’ experience and knowledge of online retail markets, making him an extremely valuable addition to the Shoply Board.
Positive operating cash inflow Net operating cash inflow for the quarter was $0.2 million, highlighting a positive trend towards becoming operationally cash-flow positive.
This trend is being driven by increased sales and carefully managed operating costs.
Over the quarter, major costs included working capital, staff and advertising, all of which remain in line with management expectations.
Investing activity cash flow During the quarter Shoply made the final payment of $253k for the purchase of the eStore assets.
It also invested a further $144k in intellectual property in the form of enhancements to the Shoply operating platform and the purchase of the shoply.com domain name.
Net investing outflow for the quarter was $436k.
Cash at bank Cash at bank as at 30 June 2015 was $2.4 million, down from $2.6m following the purchase of eStore, and investments related to office fit-out and the Shoply platform.

Outlook
Shoply is confident of continued organic growth through the 2016 financial year as it further consolidates its operations and achieves additional operational efficiencies.
Shoply has set the foundations during its first full year as a pure play online retailer and is very well positioned for further growth.
Shoply CEO Simon Crean said,“The Shoply team has delivered significant revenue growth over the past 12 months, and surpassed its revenue forecast of $18 million for FY15.

Looking ahead to FY16, the Company will continue its dual track growth strategy. “The Shoply management team look forward to delivering on another year of significant growth.“