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Johannesburg - Amalgamated Appliance Holdings [JSE:AMA] on Monday reported headline earnings per share of 19 cents for the year ended June 2010, from a previous loss of 30.9 cents.
Amap also reported that its revenue declined to R759m from R1.044bn and the group recorded a profit of R48.9m from a loss of R63.4m in 2009.
It reported an operating profit of R57m from a loss of R73.8m previously. The Amap board recommended that shareholders approve a capital distribution out of share premium of 8 cents per share.
Amap is a focused group specialising in the sales and marketing of branded household durables.
"The group continued to focus and invest in its trusted brands through above and below the line advertising and promotion. This resulted in the group increasing its market share in most categories. Revenue and stock levels were in line with the group's targets," it said.
"We continue to feel the impact of the National Credit Act introduced in 2008, in that spending patterns have shifted from credit-driven furniture chains, where the group has traditionally dominated, to the mass discounters and independent specialists. We expect consumer demand to remain weak so long as employment numbers across the economy diminish," Amap said.
Looking ahead the group said it expects retail sales to remain flat in the categories in which it trades for the coming financial year, with hopes of improvement now deferred till 2012.
"Bottom line profit improvement must therefore come from a relentless pursuit of cost savings, efficiency gains and excellent management of our brand portfolio," it said.
Amap said it continues to make inroads into new product categories. "Given the strong statement of financial position we are currently investigating a number of suitable acquisitions, but only if they follow our overall business vision to be Africa's top distributor of branded consumer merchandise. Our Africa growth strategy is on track and we are excited by the opportunities that await us to the north.
"In light of the above, the group expects to improve operational performance in the new financial year," it concluded.