Osborne Park-based Joyce Corporation Ltd, property investors and operators of the Bedshed Franchising Pty Ltd, has reported a 296 per cent increase in first half net profit, to $1.4 million.
Osborne Park-based Joyce Corporation Ltd, property investors and operators of the Bedshed Franchising Pty Ltd, has reported a 296 per cent increase in first half net profit, to $1.4 million.
The company announced a 25 per cent like for like increase in retail trade in Western Australia for the period, though revenue was down 79 per cent to $5.1 million
The full text of a company announcement is pasted below
Results
The Directors of Joyce Corporation Ltd (ASX: JYC) today announced a net profit after tax of $1.408 million for the six months to 31 December 2006.
Joyce Corporation Ltd's core business activity is the ownership of Bedshed Franchising Pty Ltd. Bedshed Franchising Pty Ltd is the franchisor of one of Australia's largest specialty bedding and bedroom furniture retailers with 37 stores in Western Australia, Victoria, South Australia and Queensland.
Bedshed Franchising Pty Ltd continues to experience buoyant retail trading with a 25% like for like increase in WA, a 26% like for like increase in Victoria and significantly ahead of plan in Queensland, for the six months to December 2006.
The six month period also saw the opening of two new Bedshed stores, one in Midland, Western Australia, the other in Kawana, Queensland. Bedshed also franchised three company stores in Queensland in Morayfield, Macgregor and Townsville.
Aside from Bedshed Franchising Pty Ltd, Joyce Corporation Ltd has a substantial property portfolio, which delivered a valuation increase of $840,000 for the six months to December 2006. The profit result also included a number of one off costs.
Outlook
Mr Robert Mahoney was appointed to the position of Managing Director of Joyce Corporation Ltd and Bedshed Franchising Pty Ltd in January 2007, following the resignation of Bedshed Managing Director, Mr Mike Smart, in August 2006.
Mr Mahoney has a wide background in the retail and franchise sectors in the UK, South Africa, New Zealand and Australia. He has a successful track record at senior executive level developing existing and new businesses. His most recent role has been as Strategic Projects Manager Australia and Retail General Manager, New Zealand for Shell.
With Mr Mahoney's appointment and identified growth opportunities Bedshed Franchising Pty Ltd is poised for brisk growth, with forward planning including the expansion of the present 37 stores to approximately 80 over the next five or so years and consideration of a number of significant additional business opportunities.
The Group's robust financial wherewithal with little net debt and strong asset base, sees it positioned ideally for sustained growth.
Joyce Corporation Ltd Chairman, Mr Dan Smetana and the Joyce Corporation Ltd Board is confident that the company's financial position and identified business growth opportunities present a positive future for the company and its shareholders.
Dividends
The Directors have announced that an unfranked interim dividend of 3.5 cents per share will be paid in May 2007.
