Car audio and mobile phone retailer Strathfield Group Ltd is looking to a new franchise model and higher margin product categories to drive its return to profitability.
The beleaguered group, which underwent a management clean-out in the first half, has delivered a net loss of $3.46 million for the six months to January 1, despite making a second quarter profit of $2.1 million.
The result included inventory writedowns and redundancies of $2.1 million.
This time last year, Strathfield posted a net profit of $2.87 million.
Chief executive Gerard Frack, a former Optus senior executive who was appointed last September, said trading in the second half of 2005/06 will be on a cash profit basis.
That would contrast to a $13.9 million loss in same period last year.
The first franchised store is expected to be operating by April 1, with the majority of its 90-odd stores to be franchised during 2006/07.
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