BSI grabs sporting chance overseas

MELBOURNE: Sports apparel supplier Beyond Sportswear International (BSI) is pinning its hopes for growth on new overseas deals.

BSI CEO Glen Casey said contracts clinched in March to supply all sports apparel for UK elite private school Harrow as well as clothing for the England and Scotland Indoor Bowls clubs under its Kea sportswear brand set the tone for the listed group's future growth.

"We knocked on the door of 15 to 20 private schools in the UK as well as other sporting organisations and we've had a good response, particularly as we are known for the innovation of our design and our fabrics. The fact that we are leading suppliers in Australia, with 75 per cent of Australia's Olympic athletes wearing our product. . . has done a lot for our credibility overseas."

With BSI planning to drive sales of both its Kea and Kombat brands in the UK and New Zealand aside from the Harrow and bowling club contracts, the weak Australian dollar was also driving overseas sales.

"We manufacture out of China and due to currency issues, our price ex-China is very competitive at the moment," he said.

Going forward, BSI would set up domestic operations in the UK and New Zealand to produce clothing for BSI clients under licence. The outlook for growth was strong, particularly in the UK, Casey said.

"Our expectation is that we'll make £500,000 ($A1.03 million) from Kea business in the UK this financial year, and we're looking at £750,000 to £850,000 ($A1.5 million to $A1.7 million) in the 2009/10 financial year."

Closer to home the company also planned to grow market share in Australia through partnerships with private schools and sporting clubs. This follows BSI's announcement in February that it planned to terminate or decline to renew a number of under-performing event and product licences - including Super League (Europe), Hummel, Women's soccer, Suncorp Stadium, Worldcup Rugby - all of which had adversely affected BSI's performance to December 2008.

Profit before income and tax (PBIT) for the half year to December 2008 was up 59 per cent on the previous corresponding period, due to increased focus on the schools and sporting clubs sector, Casey said.