Restructuring starts paying off for Whitcoulls owner REDgroup as profit climbs 15%

Wednesday 28th April 2010

Early benefits from Australasian book seller REDgroup's amalgamation of the Whitcoulls, Borders, and Angus & Robertson brands have produced a 15% like with like uplift in earnings for the six months ended Feb. 27.

The company announced a first-half profit of A$19.5 million, up from A$10.7 million a year earlier, which was heavily impacted by one-off restructuring costs.

"Pro forma profit growth year on year was 15%," group managing director Dave Fenlon said in a statement to the NZX. The period marked "phase one of an integration and restructure process focused on the fusion of the three iconic brands", he said.

REDgroup has debt listed on the NZDX.

The company expected to launch a multi-platform e-book offering in May, was opening three new stores in Australia, and continued to investigate sites in New Zealand, Australia and Singapore, where REDgroup has two stores.

Businesswire.co.nz

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