The lodgings of Catch Group’s 2017 accounts reveal an asset write-down of $25 million, but the company’s outlook for FY18 doesn’t seem to be impacted, as the company predicts further revenue growth.
The owner of Catch.com.au has lodged another round of asset impairments, with a $25 million write-down of intangible assets, resulting in a $17.8 million loss.
These write-downs are a result of a number of asset swaps with Lux Group and merged operations with Cudo, DEALS.com.au, Living Social, Scoopon and New Zealand-based company, TreatMe.
Catch Group also reported bottom line losses in 2016, after a $125 million reduction in the value of goodwill and trademarks meant the company finished the year at a loss of $113.8 million.
According to Catch Group, the 2016 losses were a result of the group writing down goodwill in the products branch of its business, when the company’s co-founders bought back a 40 percent stake in Catch that had previously been sold in 2011.
However, despite the goodwill write-downs, the company has told the AFR that it’s in a good place, with sales reportedly increasing by 50 percent year-on-year.
Catch Group also had a strong 2017, posting revenue of $306 million and earnings of $16 million (EBITDA). At the time, these strong results were attributed to the acquisition of Pumpkin Patch, which reportedly resonated well with customers, as Catch further developed itself as a one-stop destination site with great brands and affordable prices.
“We will continue to differentiate ourselves from other online retailers by having products no one else has, at amazing prices. We are a product company first and foremost and a key focus for the year ahead is to rapidly expand our offer into new categories to ensure we meet the needs of Aussie shoppers,” Co-Founder of Catch Group, Gabby Leibovich said in a statement at the time.
This is something the company has evidently persisted with in the first half of 2018, with the group launching its own online marketplace, Catch Outlets in April, launched Catch of the Day in New Zealand, and partnered with Optus in its new mobile service offering, Catch Connect, back in February.
Catch Group is confident that its 2017 asset swaps that resulted in write-downs last year, will start to provide returns for the business in 2018, with an expected $60 million boost to its revenue for the year.
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