Malaga-based window treatments company Kresta Holdings Ltd has announced a net profit of $2.4 million for the first half of the 2006-2007 financial year, a 53 per cent increase on the previous corresponding period.
The full text of a company announcement is pasted below
The directors of Kresta Holdings Limited today announced a net profit after tax of $2.43 million for the half year ending 31 December 2006, an increase of 53% on the $1.59 million in the half year ending 31 December 2005 (after adjusting for the profit of $0.87 million from the sale of property in November 2005).
Profit was affected by the $0.4 million cost of establishing and developing the M Window Fashions brand in Myer stores. However, the directors believe that with expected economies of scale and an increase in sales, substantial benefits will flow from this investment in the next 2 years.
Operating revenue was $62.9 million compared to $42 million for the previous corresponding period, an increase of 50%. This increase reflects, in part, the acquisition of Curtain Wonderland in the first half of 06/07.
Like-for-like sales increased by 13% when compared to the previous corresponding period.
The group's ratio of net debt to equity at December 2006 was 59%. This is an increase from the 23% at 30 June 2006, due mainly to the acquisition of Curtain Wonderland (outlay of $4.7 million) and a share buy-back of $1 million.
The directors have declared a fully franked dividend of 1 cent per share, payable on 9 July 2007.
