Billabong International sold its 51 percent stake in Surfstitch back to its two founders, Justin Cameron and Lex Pedersen, two years ago. Surfstitch may now be poised for another change of ownership. The Australian group announced last week that Cameron, who has been acting as chief executive and managing director of the online action sports retailing and video production group, released a statement “by e-mail” to the effect that he has resigned from all his positions inside the company, apparently to pursue “an opportunity relating to the potential acquisition of the company in conjunction with private equity.”
Surfstitch, which is quoted on the Sydney Stock Exchange, has replied by saying it has formed an independent committee to consider a proposal, with financial advice from UBS and legal advice from Herbert Green. Howard McDonald, chairman of the group, will monitor the company's day-to-day activities until further notice.
The news came after Surfstitch announced that it is targeting annual revenues of one billion Australian dollars (€677m-$750m) in five years' time. The company reported a 40 percent increase in pro forma sales for the six months ended Dec. 31 to A$145 million (€98.1m-$109.8m), generating positive operating earnings of A$13.9 million (€9.4m-$10.4m) for the period.
Sales grew by 63 percent to A$24.1 million (€16.3m-$18.1m) in North America, by 39 percent to A$65 million (€44.0m-$48.8m) in Europe and by 32 percent to A$55.8 million (€37.8m-$41.9m) in Asia-Pacific.
The figures were evidently inflated by the company's acquisition late last year of Surfwear Hardware International, which markets various brands of surfboards and stand-up paddle boards, along with its online retail operations.
Surfstitch operates now three transactional websites - Surfstitch, Swell and Surfdome – as well as various media businesses including Magicseaweed, Stab, Garage Entertainment & Production and The Lens.
