Joyce profit falls on property values

A loss in property revaluations has taken the shine off an increase in retail sales for Bedshed owner Joyce Corporation Ltd, which posted a net profit fall of 34 per cent for the 2008 financial year.

The Osborne Park-based company reported a net profit of $2.1 million including the sale of a South Australian investment property of $4.2 million, which netted Joyce a $1.63 million profit after a $680,000 provision.

The previous year's net profit result was $3.2 million.

Property revaluations fell from fiscal 2007's $2.9 million to a loss of $14,000, which Joyce said if excluded along with legal costs, saw the underlying operating profit rise from $687,000 to $1.3 million.

Retail sales in subsidiary Bedshed Franchising Pty Ltd increased 9 per cent leading to a profit result of $1.3 million.

The company is expecting sales percentage growth to remain in single digits citing current economic conditions and a depressed retail sector.

However chairman Dan Smetana said the company is in a strong financial position and identified business growth opportunities present a positive future.

The directors have declared a final unfranked dividend of three cents per share, taking the total for the year to six cents.