Automotive and industrial parts supplier Coventry Group has flagged a stronger FY2015 after lodging an 11 per cent slip in earnings in FY2014.
Coventry said its revenue for the financial year just gone came in at $210.6 million, with its net profit of $1 million in line with guidance released earlier in the year.
However the profit result was down from a $7.9 million net profit in FY2013.
Coventry said its falling revenue and profit was due to large miners scaling back operations, subdued trading in other parts of the general economy and an increase in the Australian unemployment rate.
Sales in the company’s Konnect fasteners division dropped 7 per cent on the previous year, while its Cooper Fluid Systems division also recorded a fall in revenue, of 19 per cent.
Coventry Group’s Artia cabinet hardware arm’s revenue fell by 22 per cent, after it exited from furniture products, while its AA Gaskets and NZ Gaskets division recorded a 1 per cent increase in sales.
“With slight improvement in the economy recently and the benefits of operating improvements within the group, the directors and management are working to improve earnings in FY15,” Coventry said in a statement.
Coventry said it was expecting to achieve earnings growth in its Konnect division within 36 months, while it would also focus on growing its fluids business to support its mining focused customer base.
The company will also pursue further acquisitions to increase its earnings in FY2015.
At close of trade today, Coventry Group shares had gained 0.31 per cent, trading at $3.21.