Downturn hits Coventry half-year profit

A near $5 million impairment charge to one of Coventry Group's divisions has impacted the company's bottom line, which fell 61 per cent for the first half of fiscal 2009.

The company today reported an interim net profit of $700,000, down from the prior corresponding period's $1.8 million.

Coventry said there were a number of factors that negatively impacted the profit result, including a $4.9 million impairment charge to its cabinet and furniture hardware business called Artia due to the adverse economic conditions.

Additionally there was a write down of $3 million for stock and receivables following a review, $400,000 in restructuring and redundancy costs and $800,000 was incurred over the sale and exiting of automotive businesses in Queensland and the Northern Territory.

Meantime a net cash profit of $7.7 million was realised with the sale of certain distribution centres and branches, which helped Coventry to reduce its debt to $37.2 million.

Overall revenue was down 2 per cent to $225.1 million from $229.8 million.

Revenue for the automotive parts distribution was down 7 per cent to $82.5 million and gasket manufacturing revenue was down 3 per cent to $5.9 million.

The industrial products division reported a 1 per cent increase in revenue to $138.4 million.

The company has not declared an interim dividend.