While recording a hefty increase in sales for the financial year to June 30 2001, retailer The Strathfield Group has had its profits slashed by half due to a bevy of bad investments.
The group, which sells IT goods both in its retail outlets and e-tail site (www.ozbuy.com), has announced a net profit of $3.525 million for the financial year; down on the $6.730 million it reported in the previous financial year.
The group reported total sales of $232.5 million, a 13 per cent increase on the previous financial year. But these figures were soured by a general write down of $3.671 million (after tax) in poor investments. The biggest loss maker was the group's 31 per cent investment in One.Tel phone distributor One.Fone.
The company will now close several stores that are under-performing and cut back on staff to achieve $3.1 million in cost reductions, the company said in a statement. On reporting the results, the group's share price plummeted to a new low of 83 cents.
On a brighter note, the company reported the retail sales figures for the first two months of the current financial year have been stronger.