We are committed to maintaining the lower cost structure and when the business cycle does turn, as we expect it should over the latter part of calendar year 2010 and into 2011, Clive Peeters will be well placed to leverage improving profitability from this lower cost base. Having said that, our business plan for FY'10 is conservative and is predicated on the assumption that retail conditions will continue to be as challenging as they were over FY'09."
The Company announces that by adopting very strict inventory management disciplines it has reduced its overall investment in inventory over FY'09 by in excess of 20% despite opening two new superstores. Smith said "This has assisted us to maintain our sound cash flow position, and together with our reduced costs of operation will enable the Company to commence a solid Bank debt reduction programme over FY'10, which will then continue into 2011 and 2012."
In further news, Clive Peeters announces that it will launch its online retail business at the end of July 2009, together with an improved website.
Clive Peeters expects to formally announce its full year 2009 trading results on 28 August 2009.
