Economy

Harvey Norman full-year profit slips, Virgin posts full-year loss, Administrators hold first Tony Ferguson collapse meeting: Midday Roundup

Yolanda Redrup /

Harvey Norman Holdings profits have fallen 17.5% for the full-year, posting a net profit of $142.2 million.

In the previous corresponding period the retailer had recorded a net profit of $172.5 million.

Sales revenue has fallen slightly from $1.41 billion in 2012 to $1.32 billion this financial year.

The company said in a statement trading conditions in Australia had improved in the second half of the year, and it’s hopeful low interest rates will “stimulate the housing market”, with Harvey Norman expecting to be a direct beneficiary.

“We remain cautiously optimistic about an improvement in domestic retail confidence and look forward to capitalising on any uptick in consumer sentiment,” the company said in a statement.

Virgin posts full-year loss

Virgin has posted a net loss for the full-year of $98.1 million, consistent with previous guidance given by the company.

The loss is a significant fall from the $22.8 million profit it recorded in the previous corresponding period.

Despite the loss, revenue was up 1.9% to $3.99 billion, as Virgin said one-off restructuring and transformational costs to do with acquisitions of Skywest and Tigerair had impacted on its net-profit.

In a statement, Virgin chief executive John Borghetti says while the financial results did not meet initial expectations, 2013 was a “pivotal year” for the airline.

“We now have the right structure in place to compete vigorously in all key market segments and achieve sustainable performance in the future,” he says.

Administrators hold first Tony Ferguson collapse meeting

The first creditors meeting for weight-loss company Tony Ferguson is being held today, after the business fell into administration last week.

The company and the administrators from Farnsworth Shepard have so far remained tight-lipped about the collapse, not yet responding to SmartCompany’s calls.

Reports have emerged over the past week of creditors in the business, which are likely to be affected by the collapse.

Fairfax is reporting today Jalco Group, a manufacturing service provider of which Barry Smorgan is the executive chairman, owns 49% of Tony Ferguson and is now under significant financial pressure.

Shares up on open

Aussie shares have increased slightly on open, taking its lead from Wall Street overnight.

The S&P/ASX 200 benchmark was 12.1 points higher to 5104.5 just before midday.

Last night the Dow Jones closed 0.11% higher, up 16.44 points to 14,840.95.

Advertisement

We Recommend

FROM AROUND THE WEB