By Patrick Avenell

SYDNEY: Clive Peeters has this afternoon reported an 89.6 per cent drop in net profit for the six months ending 31 December 2008. Whereas profit for the corresponding period in 2007 was $9.6 million, last year the figure was just $1 million.

Unsurprisingly, the current economic climate has been blamed for this alarming result, with the listed company explaining the trading performance to the Australian Securities Exchange thus:

“Floor traffic and sales severely impacted during H1 2009 due to the deteriorating economic conditions [sic], and threat of rising unemployment, which put the brakes on discretionary consumer spending.”

Other reasons for the reduction in profit included a 10-15 per cent drop in floor traffic and stock shortages in December, the key selling month in the lead up to Christmas.

The worst performing state for Clive Peeters was Tasmania, which was down 10.3 per cent. This was followed by Queensland, down 13.3 per cent, and Victoria, down 12.6 per cent. All other states reported a reduction in sales compared to H1 FY2008.