Restructure results in loss

19:44, Sep 27 2012

Clothing retailer Postie Plus Group reported a $183,000 loss for the year to August 5, compared to a net profit of $656,000 the previous year. The turnaround was due to restructuring costs.

Those costs related to the sale of its lower- margin Babycity infant gear brand in May, and moving its marketing and distribution centres to Auckland.

Chairman Richard Punter said the performance reflected the group's decision to restructure, selling off Babycity and focusing on growing the Postie brand in order to be "competitively positioned" when consumer confidence recovered.

The firm reported a "normalised" full-year net profit of $493,000 before its one-off restructuring costs. Shareholders will receive a fully imputed dividend of one cent a share on December 14.

A 4.24 per cent fall in sales revenue to $111 million from $115.7m the previous year reflected flat trading conditions and the sale of Babycity stores, Punter said. However, the Postie brand had maintained margins and sales volumes.

Chief executive Ron Boskell said during the period under review two new stores had been opened and four closed, including one affected by the Canterbury earthquakes, while the other three were combined with existing stores.

A nationwide store refresh programme was also rolling out on schedule, overseen by new general manager Jane Gammon.

A new store had opened in Wellington in the current financial year, and another three stores will open in Auckland. The group now has 83 stores around New Zealand.

The group was now fully compliant with its banking covenants, Boskell said.Fairfax NZ


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