egolinews.com

Clive Peeters Limited (CPR) squeezed out a modest $424,000 profit in the six months to 31 December, despite posting revenue of $252 million. The profit figure was down 57%, while revenue dipped just 5% from the previous corresponding period.

Clive Peeters said the bottom line was affected by ‘misappropriation of funds’.

In August last year, the company said that one of its payroll employees had embezzled up to $19.4 million. At the time, the company said it believed up to $16.4 million could be recovered through the sale of properties.

Managing director, Greg Smith, said the company considered it a ‘very creditable result’.

“Some erosion of gross margin occurred during H1 2010 due to a more competitive retail environment,” Mr Smith said.

”However Clive Peeters margins were impacted negatively as a result of the misappropriation events and the associated impact this had on our supply channel and rebate revenue.”

Looking to the second half of the year, the company said lifting margins was a key priority for the company.

However, Clive Peeters said both January and February had seen sales ‘significantly’ below expectations.

Looking at the numbers in more detail, Clive Peeters reported EBITDA and EBIT of $4.6 million and $2 million respectively, down 28% and 43%.

The board declared that it would declare a dividend as it tries to shore up capital.

At the close Friday, Clive Peeters shares were 28c. The company was trading at an all time high of $3.50 in April 2007.

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