In an ASX release this morning Clive Peeters has made several announcements, including a predicted operating loss of $5 million, the ending of its strategic review process and the launch date of its online retail business.
Clive Peeters reported in earlier announcements that it was expecting operating losses for FY09, this has now been confirmed with the retailer forecasting an operating loss before tax of $4.5 to $5 million. This includes non-recurring costs with the strategic review, losses on store closures, cost of re-engineering the business’ overhead cost structure and the cost of recent financing.
But managing director, Greg Smith was still happy with the performance of the company.
“Over FY09 we have progressively reduced our underlying business overheads by $38 million annualised. This is an outstanding result which our management team has worked hard to achieve,” he said.
“With a reduced cost structure now firmly in place we are confident we have repositioned the business for a return to profitability in FY10, even taking into account the likelihood that sales and margin will be under continuing pressure during FY10.”
In addition to this Clive Peeters also highlighted that it is bringing its strategic review process to an end after it failed to achieve an acceptable outcome since it launched in February 2009. The retailer also had to close three small unprofitable stores in 2009 and is set to close its Harvey Bay store in Queensland in the next few weeks.
“It has been very difficult in this economic environment for small to medium listed companies to raise capital, so for now it is business as usual and we welcome the opportunity to concentrate our full attention on managing the business.”
In further news, Clive Peeters also announced that it will launch its online retail business at the end of July 2009, together with an improved website.
Clive Peeters full year 2009 announcement is expected to be released on 28 August 2009.