Automotive and industrial parts distributor Coventry Group increased its revenue by 3 per cent over the half year to December 31, but it was not enough to stop the company lodging a $19.6 million loss.
The group said poor trading conditions in its fasteners division resulted in a $21.3 million charge, offsetting the rise in revenue to $202 million from $195 million in the prior corresponding period.
Another $700,000 in write-downs were due to the non-cash costs of an employee share issue and issuing options to executives, while $200,000 was written off due to restructuring and redundancies costs.
In the previous corresponding half-year Coventry lodged a $2.4 million profit.
"The results from trading in all parts of the group other than the Cooper Fluid Systems division were very poor and markedly below the previous comparitve period," Coventry said in a statement.
"The competitive position for both the fastener division and the automotive parts business was intense."
Coventry Group said its Western Australian automotive parts division was competitive, with sales to the mining sector exhibiting good growth.
The group said it would review its cost structures to ensure profit was maximised in the short term.
"It remains difficult to give firm guidance, but given economic improvement, a gradual lift in the group's operating profit is likely," the company said.
The stock was unchanged after the announcement, closing trade at $1.95.
Coventry will pay a fully franked interim dividend of 6 cents per share.
