Redbubble (ASX:RBL) shares had been on a solid run for the last four months, nearly hitting $2.

One of the major catalysts was a positive September quarter.

But the stock was sent crashing back to earth this morning with news this quarter was not going to be as good.

The online market place, which serves independent artists, gave a trading update for the quarter to date. The company’s market place was growing but at only 2 per cent year on year.

Redbubble admitted this was below expectations and driven by increased price competition. It also said sales were below historic all time highs reached last year.

The result came despite its recent acquisition, TeePublic, delivering 59 per cent revenue growth year on year.

However the company still anticipates positive free cash slows this financial year.

“We will pull all levers to drive growth and deliver the best possible FY 2020 result, setting up RB Group for long term success,” CEO Barry Newstead said.

Redbubble is still in positive territory for 2019 having begun the year at 90c. But shares fell over 40 per cent this morning.

 

Read More: 
Redbubble, the online marketplace for artists, spikes (again) on strong Q1 trading update 

In other ASX corporate news today:

Aspiring graphite producer Walkabout Resources (ASX:WKT) similarly fell this morning after telling shareholders it wouldn’t finalise funding until next calendar year. It wants to raise $US40m ($58.2m) to fund its Tanzanian project.

In better news, AuMake (ASX:AU8) gave a positive trading update and it gained 13 per cent. For the months of October and November it made revenue of over $18m and positive earnings. The company credited tour group visitation numbers exceeding expectations and the realisation of synergies from recent acquisitions.

Livestock exporter Wellard (ASX:WLD) also climbed 13 per cent after announcing it had sold one of its ships to pay down debt. The sale of MV Ocean Shearer will raise $77.8m, and $62m of this will pay down debt. The remainder will be cash in hand. MV Ocean Shearer is the world’s largest purpose built livestock vessel. While debt still sits at $24.6m, chairman John Klepec said the sale reduced it to “very manageable levels”.

Less than a week after listing, 3D additive manufacturer Amaero (ASX:3DA) has recruited David Carbon, a former vice president of Boeing, as an advisory board member. Carbon said he believed Amaero would be “at the leading edge” of the metal 3D printing sector. The company hopes to appoint two more advisory board members within 12 months.

Workplace management tech company Damstra (ASX:DTC) is acquiring rival Scenario for $4m. Scenario serves mining and utility clients, including Adani and Stanmore Coal (ASX:SCL), and is expected to improve Damstra’s earnings margin.

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