Special look out for specialty group

NATIONAL: Listed apparel retailer Speciality Fashion Group (SFG) will continue to look for new acquisitions despite remaining cautious about the chances of a slowdown in consumer spending.

In a statement confirming a five per cent lift in half-year profit, group CEO Gary Perlstein said the company would continue to invest in existing brands and selectively examine potential "bolt-on" acquisitions to help drive sales growth.

"The evolution of our brand positioning continues, with ongoing improvements in 'brand look and feel'," Perlstein said.

The news comes after SFG announced earning before interest, tax, depreciation, impairment and amortisation (EBITDA) of $35.9 million for the six months to December 31, 2007 with net profile after tax increasing by five per cent to $19.5 million. Group sales rose 7.2 per cent to $288.7 million.

The store added 23 new stores during the period - 16 of which were through organic growth and a further seven through its acquisition of retail brands Queenspark and Big City Chic - taking its total to 807.

Perlstein said while the fundamentals of the business were strong, he remainded cautious.

"The January sale period was in line with expectations [however] we are not immune to what would appear to be a recent weakening in consumer spending and it is therefore difficult to make predictions in respect to the short-term future."