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UPDATED: Kogan Heads Down, Down, Down

Kogan accounts lodged with the ASX for the 6 months’ period ending December 2015 reveal that sales at the online retailer fell from $108M to $102.6M, shares in the newly listed Company fell after opening on the ASX.

Shares in Kogan fell 13 percent to $1.54 on a day when the broader market is up 0.4 per cent and rival JB Hi-Fi is up .08 per cent.

Also revealed is that his costs relating to warehousing and dispatch expenses increased from $1.6M to $2.5M during the same period.

A $8.1M loan that was on the books in 2014 has disappeared, at the same time his trade payables has blown out from $5.6M in 2014 to $13.6M for the six months ending December 2015.

Some analysts are suggesting that Kogan is now factoring his trade payables.

Profits for the six months’ period ending in December fell from $2.4M to $1.6M.

Earlier today shares in the Kogan Group owners of Kogan.com were listed on the ASX listed at 12.15pm they were flat against its offer price of $1.80 falling to $1.60 in minutes.

The listing gives Kogan a market capitalisation of $168 million.

Under the initial public offer 28 million new shares in the online retailer were issued at an offer price of $1.80 per share to raise $50m.

The listing means that Ruslan Kogan and business partner David Shafer have lined their pockets with a $15 million windfall from the sharemarket float of the online retailer.

At the current trading price, Mr Kogan’s 47 million shares are worth $84.6 million and Mr Shafer’s 17.8 million shares are worth $32 million.

In his six month to December trading report Kogan Group claim that they have recently broken into new sectors, launching Kogan Travel and Kogan Mobile while it is also integrating the Dick Smith online assets which were acquired in April 2016 for $2.6M.

Kogan has now sold down his 70 per cent stake in Kogan.com to about 50.46 per cent, and Mr Shafer has emerged with 19.07 per cent of the company.

The prospectus released for the IPO shows Kogan.com posted a loss of $300,000 in 2015, down from a profit of $1.8m in 2014. The company forecast profit to return to $400,000 in 2016, growing to $2.5m in 2017.

Revenue is set to climb to $270.1m in 2017, up from $214m in 2016 and $216.3m in 2015.

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