Flat sales drops Kresta's profit

Curtains and blinds retailer, Kresta Holdings has posted a profit of $3.7 million, down 14.8 per cent on last year's result, blaming weaker consumer confidence for the fall despite revenue holding nearly steady at $117 million.

The company's full-year earnings before interest and tax (EBIT) fell 12 per cent to $6.3 million, down from $7.2 million the on previous year, after the absorption of a number of one-off costs.

One-off costs included redundancy payments worth $450,000; plus $200,000 on closing four stores and relocating or refurbishing another seven; restructuring of its fitting and service department at a cost of $400,000 and the opening of seven new stores worth $900,000.

Kresta said these one-off costs were incurred as an integral part of the group's strategy to position the business against further deterioration in the economy.