Qbr:
Betta Stores have announced its core franchise operations had performed well in the year ended June 30, 2006 despite tough competition in the industry and a poor retail trading environment.
The company’s Betta Electrical, Betta Electrical Superstore and Chandlers franchises generated revenue of $69.9 million, down 0.7% from a year ago. Earnings before interest and tax however increased significantly to $6.5 million, a rise of 68.5%.
“The positive performance of the core franchise business was more significant given market conditions which included increased competition, weakened consumer sentiment and greater consumer expectations,” says BSL chief executive Guy Houghton.
Abnormal costs incurred in selling or closing loss-making businesses (including the company-owned stores) and the poor performance of BSL’s central accounting operations weighed on the overall result, producing a loss of $6.0 million versus a profit (before International Financial Reporting Standards (IFRS) adjustments) of $0.6 million a year ago.
Included in this year’s result are provisions totalling $6.5 million covering items including losses on non-core asset sales, onerous contracts, prior period accounting errors and the major impact of aligning with IFRS.
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