As sales slip a mere 1%.

Godfreys net profit after tax (NPAT) was $9.2 million for the year to July 1, 2016, down from $11.5 million for the year to 26 June, 2015. Sales for the year were $179.3 million, a decline of 0.9% and comparable store sales fell by 9.7%. However, online sales grew by 13% or $600,000 and the retailer rolled out a click and collect service in July 2016.

Total sales in Australia were $151.1 million, down by 2.8%, while comparable store sales slid 10.5%. Meanwhile, total sales in New Zealand reached $28.2 million, up by 10.6%, although comparable store sales declined by 5.7%.

Godfreys

In FY2016 Godfreys opened 15 new stores, closed 5 and ended the year with 222 stores operating in Australia and New Zealand.

Commenting on the results, chairman Rod Walker said, “This has been a challenging period for Godfreys, reflected in the financial performance for the year announced today. John Hardy and his senior team are now restoring Godfreys to an acceptable level of financial performance.

“John brings a deep knowledge of the Australian retail market to Godfreys as well as an extensive history with Godfreys itself, including several decades in senior management positions. He is already bringing about much needed change and the Board has confidence in his ability to reposition the business, particularly given his established turnaround skills.”

Operational developments

During the period, Godfreys increased its portfolio of franchise stores as part of a targeted strategy to expand its presence in smaller regional markets which do not have the size and scale to support a full corporate store.

Godfreys also launched 43 new products in FY2016 and consolidated its service team into Altona warehouse in May 2016. The company plans to expand its range, particularly in the backpack and stick vacuum categories as it continues its roll out of premium Vorwerk products.

The acquisition of The Service Company (TSC) in February 2016 has allowed the company to expand its presence in the commercial cleaning space. The integration is “progressing well, with positive early responses from customers”, according to Godfreys.