Feltex BOD confirms that no final dividend will be payable

28 Jul '05

5 min read

Leading carpet maker Feltex's Board announces that after a profitable 4th quarter for the year ended 30 June 2005, the preliminary unaudited operating result (before one-off restructuring costs) for the 2005 financial year is $13 million (NPAT). This is $1m higher than the 20 June Earnings Guidance. The Board reaffirms that no final dividend will be payable.

The Board continues to move with urgency on its commitment to improve operating profitability. Forty-two additional salaried positions will be made redundant, in addition to the four senior executives whose departure was announced earlier. Inventory levels are being reduced to match sales demand.

The review of operations is continuing. And the Board has resolved to seek financial information from Godfrey Hirst to further consider their request for merger discussions. Preliminary unaudited operating result for the year ended 30 June 2005 The preliminary unaudited operating result for the year ended 30 June 2005 is $13m (NPAT) which is $1m or 8.3 percent higher than the 20 June Earnings Guidance of $11.5m to $12m. This is before providing for one-off restructuring costs for the CEO and four senior executives who are leaving the company.

The slight improvement in the NPAT is due to several factors: slightly higher sales; slightly lower sales rebates to retailers; tighter control of overheads; the slightly better performance of Carpet Call, the 50 percent owned carpet retailer; and the accountingfor previously unrecognised timing differences in taxation.

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