Briscoe Group Ltd’s directors said on Friday the company expected to make a lower full-year net profit after tax than previously indicated. They said November ended disappointingly, December trading started more slowly than anticipated and this was likely to bring a similar cut in 2nd-half profit to the $3.1 million first-half reduction.
In that event, net profit after tax for the full year to 31 January 2005 was likely to be $17.5 million instead of the previously forecast $23.6 million.
Managing director Rod Duke said: “It should be recognised that around a quarter of our total sales revenue each year is generated during December & January, and we are now only halfway through December. However, it is already clear to us that the earlier reductions in bottom-line performance will not be recovered before year end.”So far, December sales revenues are at higher levels than for last December, and full year-to-date sales & gross profits are both ahead of last year, but on a same-store basis year-to-date performance is down on last year. The lower than expected results are a reflection of a highly competitive market and of operating costs (including the costs of the 6 new stores opened during the year) that increased more than the increase in gross profits.”