egolinews.com

Super Cheap Auto Group Limited (SUL) forecast group EBITDA would be in the vicinity of 20% higher for the 26 weeks to 26 December 2009, when compared to the previous corresponding period. The company said the positive sales performance at Supercheap Auto and BCF Boating Camping Fishing has been augmented by improvements in gross margin and a reduction in operating costs as a percent of sales.

Despite the improved performance, the company said sales and gross margin performance at Goldcross Cycles was lower than expected and would likely result in an EBITDA loss of around $3.5 million.

Managing director, Peter Birtles, chose to focus on the positives, saying that the overall group results were pleasing.

“The momentum that we have established over the last three financial years has been maintained and, although we expect that the rate of sales growth will slow in the second half of the year, we anticipate that we will deliver solid like for like sales growth and continue to improve EBIT margins,” Mr Birtles said.

“We remain confident that we can establish a profitable Goldcross Cycles business and are in the process of finalising a revised business plan.”

Mr Birtles added that the company's store opening program is ahead of plan this year and expects to open a further two Supercheap Auto stores and four BCF Boating Camping Fishing stores in the second half of the year.

At the open Wednesday, Super Cheap Auto shares were steady at $5.45.

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