The vacuum retailer Godfreys Group Limited (ASX:GFY) announced its unaudited financial results for the half year period ended December 2015 and appointed a new CEO.
Overall sales during 1H16 remained flat as compared to the previous corresponding period, while comparable store sales declined by 5.2% over the pcp. Underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the first half of 2016 is forecasted to be between $8.5 million to $8.8 million, compared to $11.3 million for pcp. Correspondingly, NPAT is expected to be between $4.3 million to $4.5 million compared to an underlying $6.4 million for the pcp.
The company states that its financial performance was hindered by management’s inability to respond to key market trends. Godfrey’s Chairman, Rod Walker throws some light on the company’s performance: “Clearly this is a disappointing financial result which reflects execution challenges at an operational level, in particular a failure to adequately capitalise on the significant market shift away from barrel vacuum cleaners to stickvacs. While the market for stickvacs grew by more than sixty percent year on year, the late arrival of our product range meant the company was not positioned to capitalise on the major trend.”
Mr. Walker further elucidated that the company’s business operations remain robust and that the board is confident of restoring the company’s financial performance through a fresh approach under new leadership.
Godfreys also appointed Ms. Kathy Cocovski as their new Chief Executive Officer today, who will be serving the company from 27 January 2016. Ms. Cocovski brings in more than 30 years of experience in the retail sector, having served organisations such as Myer, Big W and Just Jeans.
The current CEO, Mr. Tom Krulis will be retained and will occupy the position of an Executive Director of the company. He will be responsible for international operations, including its Vorwerk product range.
GFY was floated on the ASX just a little more than a year ago and the stock has been following a downtrend since February, losing half its value.