Australian-based manufacturer and distributor Beyond Sportswear International (BSI) has recorded a slight drop in total revenue for the half year ended December 31, but has high expectations for the second half.
BSI, which manufactures and distributes schoolwear and sportswear, recorded a total revenue for the first half of $7,154, down from $7, 471 in the previous corresponding period. Sales revenue also declined marginally, from $7,441 in the same period last year, to $7,144 this year.
The company, which recently shut down its local production facility at Beenleigh in Queensland as a result of a new exclusive supply agreement with Summit 7 Pty Ltd, also revealed that redundancies resulting from the closure totalled $169,000. Initial set-up costs associated with the start-up of manufacturing at Summit 7 also impacted financial figures for the first half.
BSI directors – Andrew Plympton, Glen Casey, Jeff Taylor and Mark Kellett – said the results, although marginally lower than last year, reflected resilience given the adverse trading conditions, combined with transition costs associated with the Summit 7 agreement.
However, going forward, BSI directors said ongoing cost reduction initiatives, the 'back to school' period and the roll out of club sport apparel for the winter season are likely to yield stronger sales in the second half.
The company's trading activity has also increased in February 2012, with the forward order book indicating more robust trading set to occur over the February to April 2012 period.
The acquisition of key assets and licences of Primary Edge Pty Ltd, as previously announced in September 2011, are also expected to balance out sales periods.