Retailer Clive Peeters’, who is trying to expand their online business, is still struggling to deliver a profit, with insiders claiming that the Company is set to report a loss of $3.5 million dollars, this follows a loss in the prior quarter of $11.3 million.
Last week Woolworth’s reported that consumer electronic sales grew 5.9 percent during the half and 0.2 percent for the second quarter. Dick Smith Stores (excluding Tandy and ex Powerhouse stores) achieved sales growth of 12.2 per cent for the half year and 7.2 per cent for the second quarter.
Both Harvey Norman and JB Hi Fi who report next Monday are expected to announce an increase in profits.
Late last year, Clive Peeters got access to additional capital following the sale of several properties that had been purchased with money stolen from the Company by Sonia Causer, a former payroll manager for the Melbourne based retailer. Causer is currently facing charges in Victoria.
On August 11 2009, Clive Peeters told the Australian Stock Exchange that $19.9 million dollars worth of property had been purchased with money stolen from the retailer.
They later told the ASX that they had recovered these properties and that a sale of these properties would bolster the company’s cash flow.
Yet despite this and improved trading conditions the Company is set to deliver a loss in excess of $3M.
At one stage Causer, who had bought 389,314 shares in the company, was the 14th biggest shareholder. Shortly after the theft was discovered shares in the Company climbed 211% from $0.17 to $0.53c. Today they are trading at $0.43c.
Late last year the Company announced that they were set to take on JB Hi Fi and the Big Brown Box as well as several local consumer electronic web sites. According to Chief operating officer Gary Dunne the Company is confident that they can attract consumer to their online operation who are looking to purchase consumer electronics such as notebooks, gaming consoles and content.
A traditional whitegoods retailer Clive Peeters has also targeted the Big Brown Box web site who recently reported a significant increase in sales.