- Increasing BNT's direct sourcing and vertical integration
- Enhancing trading terms by leveraging market share increase in Entertainment, from the HMV acquisition.
- Continuing cost management and process efficiencies as a result of new systems integration program currently in progress.
- All brands report improved stock turn rates and inventory productivity.
- Ongoing price deflation in the DVD market, although largely offset by aggressive promotion activity (with corresponding margin pressure) has resulted in a $500,000 Goodwill impairment charge of our EzyDVD investment.
- Tight focus on the core business in the Wholesale and Design brand Dome Exchange has produced an EBIT result of $2.0 million (2004 $0.8 million).
- Lower discretionary consumer spending impacted dusk. Ten new stores were opened since acquisition.
Ghetto and Insane are in the final stages of closure, with few operational property issues remaining to be resolved. The cumulative FY06 costs of discontinuing these operations are estimated to be $2.4 million after tax, slightly more than the previous estimate of $2.0 million after tax.
Brazin has now fully complied with the transition to AIFRS for the half-year. The impacts of AIFRS have been adjusted for both in the comparative figures, as well as the opening balance sheet.
marketing@alchempro.com
