Farsons posts lower profit for first six months

Farsons Group registered a profit of Lm469,000 for the first six months of the year, down from Lm610,000 for the same period last year. This despite an increase of two per cent in turnover for the six-month period.
The group yesterday published its interim report for the half year ended on 31 July 2001.
Farsons said turnover for the six-month period increased by two per cent to Lm11,598,000 from Lm11,382,000 in the previous corresponding financial period. However, operating profit decreased by Lm173,000 to Lm785,000 as a result of an exceptional increase in the provision for bad and doubtful debts amounting to Lm216,000 as compared to Lm35,000 for the same period last year.
As a result, the Group reported a profit before taxation of Lm469,000, down from Lm610,000 for the corresponding period of last year.
The retail trading environment is continuing to prove difficult and the board of directors does not envisage an improvement in the near future.
During the period under review, ordinary shareholders were paid Lm400,000 in net dividends by the company. These dividends are in accordance with a resolution approved at the last Annual General Meeting and have been paid out of tax exempt profits available to the Company as at 31 January 2001.
The dividend on the six per cent (net) cumulative preference shares is due in December 2001.