Coventry to record $7m profit for FY10

Coventry Group shares were up more than 14 per cent at close of trade today after the company announced late yesterday it expects to record a net profit after tax of $7 million for the 2010 financial year.

This compares to a $1 million loss recorded by the industrial products distributor in 2009.

At the close of trading Coventry shares had risen 25 cents to $2.00.

In a statement Coventry Group said at June 30, 2010 it had eliminated its net debt and had a net cash flow of approximately $5 million.

Coventry Group said as a result of the improved profitability it is now expecting to pay shareholders a fully franked dividend of 8 cents per share in September.

This brings Coventry Group's total dividend for the 2010 financial year to 14 cents per share compared to 5 cents per share in 2009.