This article is from the Australian Property Journal archive
Publicly listed lighting distributor Lighting Corporation has posted a 14% increase in reported net profit after tax from $4.7 million to $5.3 million for the year ended June 30, 2006 – despite softening in the residential construction.
The group’s revenue rose 5% from $152 million to $160 million.
LCL’s managing director Dov Mowszowski said the company please with the result in light of the further softening in residential construction and renovations in the group’s largest markets of New South Wales and Victoria.
“The strong performance reflects the strength of our brands and the positive effect of sales and marketing initiatives.
“Product pricing, particularly in the commodity sector, continued to fall due to fierce competition and further reductions in the cost of products imported from low cost Asian countries. Meanwhile we have faced higher freight costs, due to higher fuel costs, and labour costs have risen in some areas because of shortages resulting from the resource driven boom,” he added.
In order to counter these cost pressures, the company has embarked on a program to lift productivity and implemented cost reduction strategies, such as the outsourcing of the Crompton Lighting warehouse and logistics functions.
Mowszowski said trading conditions during the 2007 financial year are expected to continue to be challenging with fierce competition, low consumer confidence and generally subdued market conditions.
“The group’s business units are focused on improving their market competitiveness through innovative sales and marketing initiatives, cost reduction programs, the development of new products and an expansion of their geographical coverage. This, combined with acquisitions, will drive further growth in the future”, he concluded.
The directors have declared a 5% increase in the final dividend to 2.1 cents per share fully franked, resulting in a total annual dividend of 4.2 cents per share, fully franked.
By Nelson Yap
