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ATTRAQT sees rewards from North American push

North American sales jumped by 193% as four more big names signed up
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Fashion brand Superdry has called on the company's expertise.

If you buy clothes online it is increasingly likely you will do so through a web site in some way facilitated by ATTRAQT Group plc (LON:ATQT).

The AIM-listed group has 120 retail clients currently but the number is growing and includes some of the best known names in the world of couture and importantly an increasing amount of US firms.

Recent interim results showed that ATTRAQT added 18 new sign-ups in the six months to June, of which four came from the US.

This led to a strong pick-up in sales that has continued into the second half.

Revenues rose 25% to £1.7mln in the six months to June helped by new customers such as JoJo Maman Bebe,The Original Factory Shop and LK Bennett.

ATTRAQT has been investing heavily in the US market and the costs of this meant interim losses rose to £970,000 (£349,000).

But having raised £3mln in November for a move into North America it has been pushing hard there.

US momentum growing

Since the half year, Matches Fashion and Eddie Bauer (US) have also signed up and the sales pipeline is strong for the remainder of the year said chief executive Andre Brown.

Annual sales are currently running at around £3.38mln, he added, up 31% on last year with orders worth around £777,000.

North American sales jumped by 193%, he said, adding he was confident in the continued success of “ATTRAQT for the rest of 2016 and the foreseeable future."

Investors will be heartened by the fact that recurring sales rose 27% to £1.57mln while the gross profit margin now sits at an impressive 86%, a percentage point more than a year ago.

Merchandising and customer response

ATTRAQT’s platform plugs into a retailers e-commerce sites and enhances the site search, category pages and new product recommendations.

 

To give merchandisers greater control of what goes out online is the aim and this applies to devices such as in–store tablet computers as well as traditional e-commerce. 

ATTRAQT’s Freestyle Merchandising platform allows merchandisers to mix and match product lines in the most effective way to maximise sales.

For example, the buyer of a new raincoat might be prompted to also consider acquiring a new pair of boots and a bag to match.

Tesco, Boohoo and Screwfix were among the early adopters, but were quickly followed by  Bonmarché, Brown Thomas, ESPA and World Duty Free in the UK and  Ben Sherman, Vix Swimwear and TUMI in North America.

The Freestyle Merchandising platform streamlines and optimises the display, search and recommendation functions.

ATTRAQT also offers three technologies in one (search, display and control over what is recommended), so the customer doesn’t have to go to multiple suppliers, giving a saving in time and cost.

Share price responds

After the interims the shares were trading 16% higher at 47.5p, valuing the business at £13mln.

 

--updates for 2016 interim results--

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