Coventry Group’s net profit plunged 71 per cent over the 2013 financial year as the downturn economic conditions and the scaling back of capital investment hurt the industrial parts and services supplier’s bottom line.
Coventry today announced a net profit of $5.9 million, down from $19 million in FY2012.
Revenue was down 2.6 per cent, to $236.5 million.
The profit result included one-off gains Coventry received from the sale of its automotive parts business of around $500,000.
Over the financial year the group shed 37 staff across its operations, as part of ongoing cost cutting measures.
Sales declined across Coventry’s operations, with its hardware division Artia the hardest hit, with a revenue fall of 7.3 per cent.
The Artia division recorded a loss of $2 million.
Revenue for Coventry’s Cooper Fluid Systems division decreased by 3.6 per cent, resulting in a 25.6 per cent reduction in profit to $9.1 million.
Sales in Coventry’s fasteners business declined by 3.3 per cent, to $120.6 million.
Despite the weak performance, Coventry will pay a final dividend of 11 cents per share, taking its full year dividend payment to 22 cents per share.
The company declined to provide guidance for FY2014, saying the Australian and world economies remained volatile and difficult to predict.
At close of trade today, Coventry Group shares were steady at $2.95.