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Postie Plus predicts 'modest' profit after sales lift

Monday 31st August 2009

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Postie Plus Group, which sold its Arbuckles manchester and homewares chain to shareholder Jan Cameron, predicts it will post a “modest profit” this year after it lifted sales 13% in the fourth quarter.

The national retailer boosted sales to $34.9 million in the three months ended June 30, from $31 million in the same period a year earlier and it expects to post a “modest profit after tax.”

Managing director Ron Boskell said in a statement that the group lifted its profit margins in the period after “significant structural and operational changes.” Annual sales increased 3% to $110.4 million.

“This is a pleasing sales performance in light of the recession and strong competition from competitors scrambling to increase sales at the expense of margin,” the statement said. “Gains in market share together with restructuring initiatives place the company in a stronger position for the ensuing season.”

The shares, which trade infrequently, were unchanged at 39 on the NZX today, and have jumped some 86% in the past six months.

Shareholders ratified the sale of the Arbuckles chain to Cameron last month for around $4 million, which is expected to contribute more than $1 million in net profit for the group. Under the deal, Postie Plus will keep 13 of the Arbuckles stores to convert into new space, while Cameron will pick up the other 13.

Businesswire.co.nz

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