Austin Group needs change

MELBOURNE: A poor results season for struggling wholesaler Austin Group has signalled a period of significant change ahead.

The company's December 31, 2007 half year results showed a net loss for the period of $3.5 million, with contributing factors including a $1.3 million inventory write down and a one off restructuring cost of $530,000 relating primarily to redundancies.

Sales revenue was down 16 per cent for the half compared to the previous corresponding period, while operating cash flow remained positive.

Austin Group managing director Brendan Santamaria said the result had reinforced directors' and senior management's determination to rapidly transform the business to a truly branded company in line with current market conditions.

"Accordingly, Austin Group is currently undergoing major structural changes to reflect these market conditions. Significant recent developments have included a substantial change in ownership including key staff becoming major shareholders, a management restructure with the engagement of key senior staff and the rationalisation of the company's locations."

"The company has also made non-performing brands redundant and has taken the strategic decision to channel greater resources into our high performers. The year 2008 will see the continued growth of key brands, Rochford, Contempo, Billicart, Purr and the recent addition of the No Fear brand," he said.