BRZ brazin limited

another one bites the dust

  1. 11,223 Posts.
    Down 31%

    RESIGNATION OF EXECUTIVE DIRECTOR

    Directors of Brazin Limited advised that Mr Ian Duffell has resigned
    as executive director of the company with effect from 30 April 2003
    to pursue his investment interests. The board is grateful for the
    contribution made by Mr Duffell to the company over the past two
    years.

    The directors also advised that Mr A (Tony) Ho, a non- executive
    director of the company has been retained on an interim basis to
    manage the Group's Corporate Development. Mr Ho is a Chartered
    Accountant and has extensive experience in retail and wholesale
    distribution.

    PROFIT GUIDANCE FOR THE 2003 YEAR

    Directors advised that trading for the quarter ended 31 March 2003
    were below expectations and projecting forward, indicates that net
    profit after tax from operations for the full year would be around
    $12 million, down 45% from prior year. As reported in the December
    2002 half-yearly results, a significant item, being an inventory
    provision of $8 million, was taken up in Sanity Entertainment
    Australia for the period. Taking this item into account and other
    significant item as previously reported, the net profit after tax
    for the year is expected to be around $8 million, a decline of 65%
    from prior year. The prior year's results included a net significant
    profit of $1.2 million.

    The geopolitical uncertainty during the March 2003 quarter has
    reduced consumer confidence and trading for the quarter was
    difficult for the Sanity Entertainment group in both Australia and
    United Kingdom. To a lesser extent, trading from Sanity
    Entertainment stores at Australian airports was impacted by reduced
    number of travellers resulting from the current SARS outbreak.

    BNT (BRAS N THINGS)

    The BNT division continues to exceed budget and this trend is
    expected to continue for the remaining of the year.

    SANITY ENTERTAINMENT (AUS)

    The re-positioning of Sanity Music to Sanity Entertainment stores is
    continuing and the division has grown market share of the growing
    DVD segment. However, severe price competition from major chain
    stores has eroded gross margin. In the short-term this is expected
    to continue as retailers vie for market share ahead of profits. The
    Australian music industry also continues to show no growth.

    SANITY ENTERTAINMENT (UK)

    Retail sales in UK were soft and sales in the March quarter was
    below expectations for Sanity Entertainment (UK). Notwithstanding
    the lower trading in the March quarter, with improvements in Gross
    margin and cost efficiencies, net profit for the full year is
    expected to be up on 2002.

    PROSPECTS 2004
    BNT (BRAS N THINGS)

    With the continued roll out of the re-branding programme, BNT is
    expected to further improve on its profit contributions for 2004.

    SANITY ENTERTAINMENT (AUS)

    As the fourth quarter of the financial year is seasonally low, the
    division would not be able to recover from the dip in consumer
    sentiments in the March quarter. The division is fully focused on
    completing the implementation of the recently installed computerised
    POS and to extract greater productivity from the technology. This
    will be evident in financial year 2004.

    SANITY ENTERTAINMENT (UK)

    Sanity Entertainment (UK) is expected to show a modest increase in
    profit after tax for financial year 2003. The year ahead will be
    consolidation year and profit for 2004 would be similar to 2003.

    Media contact: Mr Tony Ho
    Director

    Mb: 0417 345 839






 
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