22 Aug 2009

Briscoe raises profit outlook

7:03 am on 22 August 2009

Briscoes has raised its profit expectations for the six months to July, predicting net profit for the period to be about $6.5 million.

The figure is a rise of $500,000 on guidance given at the end of July and is more than double the $3.1 million profit recorded in the first half of 2008.

An impairment cost of $820,000 was also taken against the bottom line as the retailer's giftware chain failed to meet expectations.

Briscoes says the profit gains have been achieved with only a modest increase in sales.

The group's managing director, Rod Duke, says a new stock management system is behind the boost in margins, running lower inventory levels and enabling the company to improve its stock-buying.

Mr Duke says Briscoes expects to better last year's target of $8.5 million dollars in the second half of the year.