Development costs leave online retailer with loss of €75,000

Development costs left online retailer Buy4now with a €75,000 loss for the year to March 31st, but the company yesterday said it made a trading profit of €75,000.

Buy4Now reported that it had sales of €14.75 million, a 33 per cent increase on 2001. It made a net trading profit of €75,000.

However, the company had to offset €150,000 in development costs against this figure, leaving it with a loss of €75,000.

These costs included a €100,000 spend on software for its international business and €50,000 on a fleet upgrade for its logistics arm, which was listed as an exceptional item in the accounts.

Buy4now is an internet portal that sells goods and services online for 18 Irish partners.

Superquinn, its supermarket partner and largest shareholder, accounted for most of the growth in the company's turnover.

Superquinn's online sales contributed €12.5 million to Buy4now's turnover in 2002. The company yesterday said this was a 40 per cent increase on Superquinn's performance last year, and exceeded expectations.

Buy4Now expects sales to reach €18 million this year. Chief executive, Mr Ali Murdoch, said the company would be looking for international partners to expand the business in 2003.

"We expect further growth in the Irish market, and are confident that we will leverage our e-tailing experience and software assets to win contracts with major international retailers," Mr Murdoch said.

Buy4now's other partners include Arnotts, Easons, Atlantic Homecare and Gresham Hotels. Its three shareholders are Superquinn, Heiton Holdings and Eircom.

The three have a 42 per cent stake between them. Eircom has 22 per cent, Superquinn 12 per cent and Heiton has 8 per cent. The balance is held by private shareholders.