O'Connor-based foam products manufacturer Joyce Corporation Ltd has announced a net profit after tax of $4.5 million for the year ended 30 June 2006, a 75 per cent increase on the previous reporting period.
O'Connor-based foam products manufacturer Joyce Corporation Ltd has announced a net profit after tax of $4.5 million for the year ended 30 June 2006, a 75 per cent increase on the previous reporting period.
The reported profit is after incorporating new accounting standards and after allowing for significant one-off costs in relation to the sale of the company's former foam businesses and the acquisition of seven Mattress Discounters stores in Queensland. These costs include legal costs, environmental provisioning, establishment and set up costs and one-off operating costs.
Aside from its substantial national property portfolio, Joyce Corporation Ltd's core business activity is its 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 stores in Western Australia, Victoria, South Australia and Queensland. Bedshed's unique retail recipe has proven to be a highly profitable formula during its 26 year history.
Bedshed's retail trading for the year has been buoyant with a 26% like for like increase nationally and a 45% increase in overall terms.
Double digit growth is expected in coming years on the back of the opening of new stores nationally, increased importing activities and strong trading performance. The forward planning of the Bedshed activities includes expansion of the present 35 stores to approximately 80 over the next five years or so.
The company is also looking at a significant number of additional business opportunities. The company's robust financial wherewithal, with little net debt and a very strong asset base provides unique opportunities for sustained growth.
Net tangible assets, excluding deferred tax liabilities on recent revaluations, are approximately $1.47 per share and this also provides opportunities for growth.
The Chairman Mr Dan Smetana observed that the results coupled with the company's strong financial position and identified business growth opportunities; present a positive future for the company and its shareholders.
The Directors have announced today that a final unfranked dividend of 3 cents per share will be paid in November 2006. This will bring total dividends for the year to 11.5 cents per share.
A special dividend of 6 cents per share was paid in February this year arising from the sale of the company's foam businesses.
Dividend levels in excess of 7.0 cents per share, partly franked, increasing as profits increase, are considered a realistic prospect based upon planned growth and the existing economic environment.