Oroton Group on the up

NATIONAL: Oroton Group is set for significant expansion following a record net profit after tax of $9.8 million for the 2007 financial year.

Announcing the result at the group's 2007 annual general meeting on November 28, Oroton Group lead independent director Sam Weiss confirmed it represented a 22.6 per cent rise on the previous year, while reflecting a $19.2 million turnaround in performance from a loss in 2006.

Earnings before interest, tax, depreciation and amortisation of $20.3 million were up 18.5 per cent on FY06, while sales of $110.2 million represented a 2.6 increase over last year, he added, describing 2007 as a "year of many changes" for the group, which pared down to core brands Oroton and Polo following the sale and exit of the Marcs, Morrissey and Aldo businesses.

The year saw the opening of nine new Oroton stores across NSW, Victoria, WA and Queensland following the launch of an online boutique last November. The group also closed non performing stores in the factory store segment and commenced winding down wholesale sales in Oroton and Polo to concentrate on the retail side of the business, Weiss confirmed.

Oroton Group managing director Sally Macdonald cited store and product revamps and an increasingly focused offer across both brands as the reason for the group's success. Two refurbished Polo factory stores were trading about 10 per cent up on the previous year, while the Oroton brand was poised for strong growth, she added.

"I would say we are about a third or the way there in terms of progress still to be made in Oroton – across the look and feel of the stores, in optimising the product mix, expanding into new categories increasing staff training levels and so on."