Postie Plus Group Limited ASM Release
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Postie Plus Group Limited (PPG) | 3:53 pm, Friday 28 November 2008 | PPG | 0.330 |
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NZX and Media Statement 28 November 2008
Postie Plus Group Adds Further Retail Expertise to Board
Postie Plus Group, which is making steady progress in turning around its losses with an aggressive profit improvement programme, has appointed long serving retail executive and director, Ted van Arkel, to the Board.
“Ted is recognised in New Zealand as a strong and innovative retailer. He has a proven track record and direct experience both in retail operations and governance in fiercely competitive sectors which will be of great value to us as we effect our turnaround strategy,” Chairman, Peter van Rij told shareholders at the annual meeting in Christchurch today (28 November).
“We believe the company is fit and ready, having dealt with systemic stock, logistics and cost issues, to be in a position where we can achieve profit in the immediate, troubled economic times and gain market share when the economy returns to normality.“
The Group, which operates 75 Postie+ stores and 21 Baby City stores nationwide, started its profit improvement programme long before recession hit and was making steady gains from improved cash flow, dramatic reduction in stock levels, a new warehousing system, the sale of Arbuckles, upgraded information systems, a reinvigorated brand offer and ongoing restructuring.
“We have delivered on the promises we made to achieve significant savings and efficiencies with more to come as we continue our transformation from our roots as a mail order clothing business to a contemporary, value-based clothing retailer with a special place in heartland New Zealand.”
Mr van Rij said the business was already benefiting from the gains from restructuring and while the market was going to be very tight the group expected to post better results for the first six months than last year.
“We do not know when the economy will turn. Like all retailers we had weak sales in August and September. October was stronger with margins showing signs of a pick up despite softer sales. Few retailers, if any, are projecting results for December- January and neither should we. There are too many uncertainties in the economy.
“However within the business, we believe that all that could be done has been and is being done to steer us through the next few months and with our normal strong winter finish, the second half year should be better than the first half,” he said.
“Cautious though we are, we expect Postie Plus Group to come into its own with a performance in 2008-09 that will deliver a modest profit and strengthen its position as the retailer of choice for middle New Zealand.”
Mr van Arkel was elected unopposed following the decision of Kerry Dellaca, one of the original Postie Plus Group directors and original family shareholder, to retire due to other work commitments. Richard Punter, who is a professional director, with supply chain, branding and strategic skills across a range of sectors, was re-elected, also unopposed.
Mr van Rij said it was critical that the Group had the mix of experience, capabilities and competencies to guide the company through the current testing times and ensure it was equipped to grow in the future when the recession lifted.
For further information please contact:
Mr Ron Boskell
Postie Plus Group Chief Executive
Tel 0-3-339 5700; M: 027 221 7561; Email: ron.boskell@postie.co.nz
For company and investor information please go to: www.ppgl.co.nz
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