Lower than expected demand sees Legend net profit dip
- 20 August, 2013 15:42
The current market environment and lower than expected client demand saw Legend Corporation net profit dip from $9.4 million to $6.7 million during the 2013 financial year.
However, revenue was up from $103.2 million to $105.3 million for the ASX listed IT, power and semiconductor distributor.
“Having invested in growth at the commencement of the year, unexpected impacts on demand were occasioned by reduced mining activity, particularly in northern NSW and throughout Queensland, reduced activity levels in NSW and Queensland power utilities, and a further decline in dwelling construction,” Legend said in a statement to the ASX. “Management moved to decrease costs and increase sales in the second half of the year.”
The company attributed new products and the acquisition of selected Ecco Pacific assets delivered revenue growth in the second half of the financial year ending June 30.
Ecco was merged with Legend’s CABAC division.
“Legend performed well in a challenging environment, management was quick to respond to unexpected change in our markets and returned the business to growth in the second half,” Legend CEO, Brad Dowe, said. “The improved dividend outcome for the second half underlines our confidence in continued growth despite the challenges that remain.”
The company is expecting improved results in the current financial year and plans to look at acquisition opportunities aligned with its strategic plan.