Queensland-based distributor Cellnet swung to a full year operating loss of about $488,000 from a profit of about $1m last year. The company attributed the result to its loss-making online retail business which it exited in June.
“The expansion into online retail was viewed as an avenue for growth which would leverage the underutilised capacity available to the group. However, after nearly a year of operating in the online retail space not enough traction was gained to warrant the further investment necessary to produce the desired returns,” Cellnet chairman, Alexander Beard, said in a statement.
Cellnet’s core retail business fared relatively well. The retail business produced a pre-tax operating profit of about $1.3m up from about $1.1m in 2011.
It is a niche distributor of mobile accessories, flash memory and retail products.
Overall, Cellnet's revenue was down 14 per cent to about $64.1m in fiscal 2012.
Cellnet announced in June that it was exiting its online retail investment.
Its CEO Stuart Smith resigned in July.