By Patrick Avenell

SYDNEY, NSW: Sunbeam’s parent company, GUD Holdings, has told shareholders that the desultory nature of the economy over the last 12 months is the reason for a slowing of sales and a slight reduction in profit after tax.

In their letter to shareholders to advise of the upcoming annual general meeting, chairman Clive Hall and managing director Ian Campbell outlined the troubles that GUD has faced recently.

“There is no doubt that the 2008/09 year was exceptional in relation to the operational and financial obstacles that confronted not just GUD’s businesses, but all similar business,” wrote the executives.

“The unexpected nature of the speed and degree of the changes that came about as a result of the financial crisis created the most management challenges. The effect of the events manifested on GUD’s businesses in a number of ways, but especially through declining consumer confidence and a depreciating Australian dollar.”

For the future, GUD is planning a brand-based strategy to further grow profits.

“GUD’s future prosperity depends on successful management of its unique portfolio of brands; brands are the underpinning of future revenue streams and gross profit margins and hence, the Group’s profit growth.”