EXCLUSIVE: Winning Profits Soar, Revenues Up By $81M
NSW based retailer Winning Appliances who are currently expanding into Victoria, have delivered a $4M+ increase in profits as revenues surged during the early days of COVID-19 lockdowns, we can also reveal that the Company who went on a major capital raising paid under $2M to acquire Melbourne based Rogers Seller & Myhill back in August 2020.
According to documents lodged with the Australian Securities and Investment Commission Winning paid $1,932,932 for the Melbourne business, at this stage it’s not known how much debt if any they took responsibility for.
Profits rose to $6,558,000 from a 2019 profit of $2,006,000.
Revenues also climbed to $632M at June 2020 Vs revenues of $551 for the same 12-month period in 2019.
The Group’s Appliances Online business experienced continued, substantial sales growth each month from March 2020 through to June 2020 and up to December 2020.
Currently the biggest issue impacting the business is stock availability with many online products not available.
The Group that was last financial under review by their bankers reported that prior to the year end 268,197 ordinary shares in Winning Appliances Ply Limited were issued for cash consideration of $23.97M.
Total Bank borrowings are $14.38M as June 30th this is secured against the assets of Winning Appliances.
In addition, the Group has finance leases totalling $3.17M.
Winning Appliances have bank guarantees totalling $6,394,095 (2019: $3,521,157) these relate to a to a number of operating leases and facilities with third parties.
In addition, the remaining 40% interest in Winning Online Group Ply Limited was acquired for consideration of cash of $23.97M and 958,548 ordinary shares in Winning Appliances Pty Limited.
As of 30 June 2020, the Group’s liabilities exceeded its current assets by $16,409,000 (2019: $3,157,000). This negative working capital position is as a result of customer deposits taken for goods which the Company had not delivered at 30th of June as manufacturers struggled to deliver stock to retailers due to COVID-19.
The retailer said that the outbreak and the response of Governments in dealing with the pandemic did interfere with general activity levels within the community and the economy.
The measures put in place by the Australian Government resulted in the closure of all Winning Appliances retail stores (17 stores) across the country for the period from 30th March 2020 to 10th May 2020.
Due to the Group’s business model, the retail stores continued to generate revenue whilst closed from the delivery of pre-ordered stock.
All stores have since been re-opened and for May and June and up to December 2020 according to sources, they have traded ahead of the previous corresponding period.
Prior to the year end a dividend of $6,211,951 was paid on 31 October 2020 to other entities.
At this stage it’s not known how much Winning got in JobKeeper payments, key management were paid $3.14M Vs $2.04M in 2019.
Businesses that Winning have a controlling interest in include:
Winning Online Group Pty Ltd
Appliances Online Pty Limited
Big Brown Box Pty Limited
Winning Services Pty Limited
Best Home Chef Pty Limited
Power Buys Australia Pty Limited
Home Clearance Pty Limited
Biorithmico Pty Ltd
Heelix Pty Ltd
Europa Investments WA Pty
Ltd Andoo Pty Ltd
Disposer Sales Pty Ltd
Winning Bathrooms Pty Ltd
Woodwin Pty Ltd