Mnemon – the online retail giant that owns DealsDirect and TopBuy – improved its bottom line by more than $14.6 million but still suffered a loss in the 2014 financial year.
In the first report to the ASX as a publicly listed entity, DealsDirect, now listed as Mnemon after a reverse takeover in January, reported a loss after tax of $2.2 million. Last year it lost more than $16.8 million as a private company.
Revenue was also down, falling just short of $64 million for the year ending 30 June, compared to $67.8 million in 2013.
Stemming the bleeding was a cause for optimism in a "transformational" year, according to chief executive Michael Rosenbaum.
"Throughout financial years 2013 and 2014 we closed a number of non-performing business units, refocused the marketing spend to strong "return on investment"-based initiatives and reduced expenses," said Rosenbaum.
The company reported no debt and cash reserves of $5.8 million as at 30 June.
At the start of this year, Mnemon was a public company that had no operating subsidiaries. The shell purchased DealsDirect on 17 January, with the DealsDirect leadership taking control of Mnemon and implicitly floating the retail website. The transaction also raised $6.2 million of funds.
This capital was used in April to add discount e-tailer TopBuy to the stable for $2.25 million. As a result, Mnemon now has 650,000 customers in its database, compared to DealsDirect's 350,000 last year.
Earlier this month, Mnemon announced a blockbuster proposal to merge with another Australian online titan, Grays Online. The completion of that deal will result in a customer database of 6.2 million for the newly formed Grays eCommerce Group.
"The combined Grays eCommerce Group will bring together premium e-commerce retails brands including DealsDirect, TobBuy, GrasyaOnline and OO.com.au, and will collectively deliver sales of $440 million," Rosenbaum said.
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