Friday 1st March 2013
|Text too small?|
Postie Plus Group, which last year avoided breaching its banking covenants, is in talks with its banks again after posting a wider first-half on dwindling sales and thinner margins and bracing for an annual loss. The shares tumbled.
The Auckland-based company made a pretax loss from continuing operations of $2.56 million in six months ended Feb. 3, compared to a loss of $924,000 a year earlier, it said in a statement. Sales fell 1.5 percent to $43.93 million and overall gross margins declined. The results will be announced on March 29.
Postie Plus expects a "substantial loss for FY2013" after its logistics and distribution service provider struggled to develop a new distribution centre, and will breach its banking covenants due to the loss of margin.
"The company has commenced discussions with its bank," it said. "PPGL is working intensively with the service provider to accelerate distribution performance and has also engaged independent expertise to assist in this process."
Postie Plus shares fell 13 percent to 21 cents on the NZX.
According to the company's latest annual report, Postie Plus had secured bank loans of about $9.76 million as at Aug. 5 at an average interest rate of 5.15 percent. Notes to the accounts show the company didn't meet its interest to ebit ratio covenant of 1.5 times for the rolling 12 months to April 2012 though it was in compliance with proprietorship and liquidity covenants.
Last year Postie Plus outsourced its distribution systems and processes to a purpose-built centre in Mangere as part of its shift to Auckland, where it saw greater opportunities.
No comments yet
AIA June 2020 Monthly Traffic Update and July 2020 Preview
PCT - Delivering on strategy underpins strong operating result
KFL - August 2020 monthly update
BRM - August 2020 monthly update
MLN - August 2020 monthly update
Further COVID-19 Restrictions at SkyCity’s New Zealand Properties
FY20 results guidance met, Results date, Banking Facility
Sky sells OSB assets to NEP NZ, secures 10 year partnership
NZX fully operational - announcement re COVID-19
Heartland Market Update