Malaga-based homewares supplier Kresta Holdings has announced that its interim profit will be about 50 per cent below its result in the previous corresponding period, as a result of the cost of new stores and the low Australian dollar.
Malaga-based homewares supplier Kresta Holdings has announced that its interim profit will be about 50 per cent below its result in the previous corresponding period, as a result of the cost of new stores and the low Australian dollar.
Malaga-based homewares supplier Kresta Holdings has announced that its interim profit will be about 50 per cent below its result in the previous corresponding period, as a result of the cost of new stores and the low Australian dollar.
Last year, the company reported a net profit after tax for the six months to December 31 2007 of $3.5 million, up from $2.4 million from the previous year.
Revenue for the first half of the 2009 financial year is expected to be in the range of $59 million and $60 million, down from $62 million.
"The directors are naturally disappointed with the expected results, which were also affected by weakening consumer confidence as a direct flow-on from the global economic crisis," Kresta said in a statement.
"Kresta expects these difficult market conditions to continue for at least the remainder of calendar year 2009 and well into 2010, particularly now that increasing levels of unemployment have emerged as a major factor in the broader Australian economy."
The company said it will undertake a review of its operating overheads and steps had already been taken to reduce costs across its production, marketing, sales and administration divisions.
The review is not expected to result in an impairment or a writedown in assets.
The company has also flagged that dividends may be lower than in previous years.
Last year, Kresta issued a fully franked interim dividend of 1.5 cents per share.
Results will be released on February 20.
Rank | Company | # | |
---|---|---|---|
66th | Dome | $61.8m | |
67th | Betts Group | $55.9m | |
68th | Kresta Holdings | $55.5m | |
69th | Perth City Subaru | NFP | |
70th | Australian Capital Equity | $41.8m |