Clive Peeters has just provided an update on its financial results for the half year ending 31 December 2009. The retailer expects an EBIT and EBITDA result of approximately $1.9 million and $4.4 million respectively for the period.
“We consider this to be a very credible result, having regard to the material impact that the previously reported misappropriation events continued to have on our trading stock supply over the months of July 2009 to October 2009,” said Greg Smith, Clive Peeters managing director.
“These interruptions to supply peaked during these four months due to climate of uncertainty created by the request for a trading halt, the announcement of the discovery of the misappropriations, the subsequent request for voluntary suspension of shares to protect shareholders’ interests whilst investigations were completed, and the accompanying negative publicity.”
According to Smith, the company traded profitably in November and December 2009, and therfore fully recovered the losses accumulated over the first four months of H! 2010.
“The trading result over November and December 2009 were encouraging, because they were achieved despite a very challenging gross margin environment,” he said.
“The result was underpinned by an improving sales trend and by the restructured cost base, culminating in costs in line with the company’s expectations.”
Smith also highlighted that all but two of the 41 properties acquired through misappropriated funds have been sold and this has in turn already caused a significant cash injection for the company.
The final audited trading result for H1 2010 is expected to be announced on 26 February 2010.