20/02/2009 - 13:42

Kresta posts 57% fall in H1 profit

20/02/2009 - 13:42

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Kresta Holdings expects difficult market conditions to continue well into next year as it posts a 57 per cent slump in its half-year net profit to $1.5 million.

Kresta posts 57% fall in H1 profit

Kresta Holdings expects difficult market conditions to continue well into next year as it posts a 57 per cent slump in its half-year net profit to $1.5 million.

The result is in line with previous guidance issued last month, where the Malaga-based homewares supplier announced its interim profit would fall by some 50 per cent.

In its interim report, Kresta said results were affected by weakening consumer confidence as a result of the global economic crisis.

"... the Group expects difficult market conditions to continue for at least the remainder of calendar year 2009 and well into 2010, particularly not that increasing levels of unemployment have emerged as a major factor in the broader Australian economy," Kresta said.

The net profit also contained one-off costs, including $700,000 for the opening of seven new stores and the relocation of two, $100,000 for the closure of two stores, $450,000 for redundancy payments and a foreign exchange loss of $430,000.

Group revenue for the six months to the end of December was $59.6 million, down 4 per cent from the previous corresponding period.

Shares in Kresta were untraded at 13 cents at 15:50 AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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