Postie Plus says interim trading environment challenging
Postie Plus Group Ltd has posted a small interim net profit in a tough retail environment and while dealing with earthquakes in its home city of Christchurch.
Postie Plus Group Ltd has posted a small interim net profit in a tough retail environment and while dealing with earthquakes in its home city of Christchurch.
The operator of Postie Plus and Babycity stores reported a net profit of $749,000 in the six months to January 31, which was a turnaround from a $1.11 million loss in the same period last year.
This was after an income tax benefit of $302,000 compared to $484,000 last year. The net loss before tax was $1.05m compared to a loss of $1.598m last year.
Sales of $56.54m were up 4.6 percent on the prior corresponding period. Earnings before interest and tax of $610,000 were down from $1.14m in first-half 2010. No dividend was declared.
The company had a writedown of $147,000 for obsolescent stock and shrinkage, which compared to $86,000 last year.
"Our focus is to right-size the business and related inventory levels to match market demand and we expect incremental growth in a slow retail environment," chief executive Ron Boskell said.
The Christchurch earthquake on February 22 was noted as a post balance date event in the accounts.
The company's Sydenham, Eastgate and New Brighton stores remain closed but the retailer said business interruption insurance would cover the loss of profits.
Mr Boskell listed challenges the company faced in the period covered by the result as extended recessionary conditions in retailing, a rise in goods and services tax, disruption from the September 4 earthquake in Christchurch, the Boxing Day aftershock and weak trading pre-Christmas.
"Gross profit margins have been maintained in a highly competitive market. Market share continued to increase," he said.
Also, retail websites for Postie, Babycity and Schooltex have demonstrated good growth through recent enhancements.
Kathmandu founder Jan Cameron is a substantial shareholder in Postie Plus.
NZPA
Fri, 25 Mar 2011
Fri, 25 Mar 2011
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Postie Plus says interim trading environment challenging
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