Clive Peeters predicts 15% shortfall for this financial year

By Patrick Avenell

SYDNEY: Clive Peeters financial controller Steve Rowarth has predicted the retail group will register at least a 15 per cent reduction when it reports its yearly results for FY09. He made this announcement in a letter to the Australian Securities Exchange after an amazing day of trading.

The publicly listed retail group yesterday recorded a remarkable 41.12 per cent jump in its share price, up 7 cents to 24, prompting the ASX to investigate if there was a known reason for such a surge. The previous day, Wednesday, was also spectacular, with Clive Peeters jumping over 21 per cent.

In his response to ASX questions, Rowarth said he did not know what had caused the jump.

“This Company is not aware of any information concerning it [that]…could be an explanation for recent trading in the securities of the Company,” wrote Rowarth.

When asked for a prediction on Clive Peeters upcoming trading results for FY09, Rowarth replied that a reduction of more than 15 per cent was expected.

“The Company [expects] its operating trading result before abnormal items and income tax for the year ending 30 June 2009 to be less than the previous corresponding period by more than 15%.”

On a real money basis, Rowarth further predicted that Clive Peeters would report either a nominal profit or loss for FY09. As for the current trading conditions, Rowarth described them as “challenging”, especially for retailers of big ticket discretionary products.

Current.com.au contacted Clive Peeters managing director Greg Smith for comment.

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