MARKETS
Buy4Now sees profits dip, signs deals in US
26-10-2006
by Emmet Ryan
Irish online retailer Buy4Now has posted a rise in revenue but a drop in profits for the half year ending 30 September.
The company recorded net profits of EUR354,000 for its fiscal half year, down EUR25,000 from the same period in 2005. Turnover for the period was EUR3.15 million, up 26 percent from the corresponding period in 2005. Despite the half-year drop in profits Buy4Now forecasts net income of EUR800,000 for the full year, a 32 percent increase on last year's figures.
"Buy4Now has had a strong first half, both domestically and internationally. We envisage that the positive momentum of the first half will continue into the second," said Ali Murdoch, chief executive of Buy4Now.
The online retailer, which provides software and services to several Irish retailers including Superquinn, Atlantic Homecare and Arnotts, also announced on Thursday that it was expanding its operations in the United States having agreed two deals worth over EUR5.5 million in total.
The company has agreed deals with retailers Lunds & Byerlys in the twin cities of Minneapolis and St Paul in Minnesota, and with New Seasons Market in Portland Oregon. Buy4Now already has a presence in New York with retailers A&P and Waldbaums, as well as a deal with Roche Brothers in Boston.
"We are delighted to have got these new partners on board. It's nice to think that the residents of Minneapolis will be shopping using our software," said Kevin Murray, finance director of Buy4Now. Murray told ENN that the deal would lead to more jobs in Ireland. "It's helping to create employment in Ireland. More programmers will be needed to meet these clients' needs."
The online retailer has agreed a four-year deal to provide e-Grocery software with Lunds and Byerlys, a grocery store with 18 outlets across the Minneapolis region. Buy4Now has opened a satellite office in Minneapolis and the deal with Lunds & Byerlys includes providing consultancy, in-store technology and hosting services.
The agreement with New Seasons Market, an organic food specialist with eight stores in the Portland region, is also for four years and will see Buy4Now provide e-Grocery software and consultancy services.
Buy4Now was set up in 2000 and moved into the US market four years ago. The online retailer is based in Sandyford in Dublin and has offices in New York. The company currently employs 70 people in Ireland and has recently opened a new office at the Rockfield Centre in Dundrum in Dublin.
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