Oroton 1H profit up 24%
OrotonGroup Limited (ORL) reported a net profit of $15.4 million for the six months ended 23 January 2010, an increase of 24% on the previous corresponding period. However, the company said it was expecting challenging conditions in the second half.
The clothing wholesaler’s result was on the back of a 9.8% rise in group revenue to $81.6 million, while like-for-like sales performance for the period was 6.3%.
Oroton declared an interim fully franked dividend of 22c per share.
CEO, Sally Macdonald, said the result was achieved in what was generally considered to be a competitive retail climate.
”While trading has remained robust in our Oroton brand, we expect H2 trading to be challenging, especially in the apparel market,” Ms Macdonald said.
”The increased fully franked interim dividend reflects the confidence the Board has in the Group today and its strong financial position.”
The company said EBITDA increased 21.8% to $24.5 million, or 30% of revenue, and EPS increased 23.6% to 37.9c.
”The Group’s focus on cost management has continued to drive total expenses down to 41.8% of revenue in HY10 compared to 46.1% in HY09,” Oroton said.
The company’s net cash position at the end of the financial half-year was $300,000, up from net debt of $1.7 million a year earlier.
Oroton said strong cash flows were maintained with an operating cash flow of $17.9 million for the period.
At the close of trade Wednesday, Oroton shares were trading at $6.28.
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