Australian-based manufacturer and distributor Beyond Sportswear International (BSI) has reported a drop in net profit after tax (NPAT) for the 2011 financial year from $0.58 million in 2010 to $0.34 million.
The figures, for the year ended June 30, 2011, translate to a 32 per cent drop in revenues from ordinary activities to $16,941, a 41 per cent drop in profit from ordinary activities after tax attributable to members, to $34,000 and a 41 per cent drop in net profit for the period attributable to members, to $34,000.
As reported in Ragtrader [print edition March 25], the company, which manufacturers and distributes sporting apparel and schoolwear, recently refinanced its existing National Australia Bank (NAB) facilities with Investec Bank in an effort to refresh the business and create cashflow for expansion.
The refinance has since provided Beyond Sportswear with $1 million for acquisitions and the company has since entered into acquisition talks with sports apparel business Primary Edge and also signed an exclusive supply agreement with NSW-based company Alinta.
In a statement o the Australian Securities Exchange, BSI chief executive officer Glen Casey cited the refinance as a factor for the lacklustre profit margin and said the results “reflect the inclusion of $750,000 of non-recurring costs related to the company's recent debt refinancing and associated activities”.
Casey also said the company had struggled with tough retail conditions, but is pushing ahead with cost-saving initiatives.
“The environment in which the company's businesses are operating remains challenging. A number of initiatives continue to be explored by management in response to these challenges, including appropriate cost reductions,” he said.
“To this end, the company continues to negotiate an agreement with Summit 7 Pty Ltd with respect to improved supply arrangements and terms.”