Ann: Trading and Business Update , page-2

This one is now in real trouble:

Sydney - Tuesday - May 4: (RWE Aust Business News) - Clive
Peeters (ASX:CPR) cautioned back in February that trading conditions at
the beginning of H210 for the big ticket discretionary retail sector were
challenging and sales and margins continue to be impacted by the
competitive retail environment.
It believes that the cumulative effect of five official interest
rate rises in the last seven months appears to be having a significant
affect on consumer spending.
The unaudited net operating loss after tax for the three months
January to March 2010 is expected to approximate $4.5 million (the net
operating loss after tax for January-March 2009 was $600,000).
While full trading results for April 2010 are not yet available,
April sales have further deteriorated with the result that the April 2010
operating loss after tax is likely to have increased compared to previous
months.
Managing director Greg Smith said the company is still hoping for
some improvement in retail conditions over the months of May and June
2010, which are traditionally stronger months in the second half
of the financial year.
Also the major event of the World Cup football and the
progressive release of a host of new home entertainment and technology
products, including 3D and internet TV, are expected to stimulate some
sales growth over these two months.
"The reports of a strengthening housing market, an improving
unemployment trend and forecast economic growth all provide some grounds
for optimism for FY11," he said.
"However on balance we still expect big ticket discretionary
retail conditions to remain very challenging for some time, with the
possibility of even more interest rate rises still on the horizon."
Regarding the issue of misappropriation recoveries and
consequential debt reduction the company confirms that it has now
completed the sale of all but one of the 41 properties that were
purchased with monies misappropriated from the company over FY08, FY09
and July 2009, and had applied the majority of the funds recovered to
date, after costs of recovery, to reduce bank debt.
Bank debt has been reduced by a total of $13.5m since November
2009.
Several weeks ago it also lodged its formal insurance
claim to determine recoverable losses incurred from the misappropriation,
and negotiations for processing of the claim are proceeding with the
insurer.
The company is advancing the negotiation process for
the renewal and/or replacement of bank facilities, and for the potential
increase of its short term overdraft facility, as announced on 26
February 2010.
Clive Peeters is exploring a range of strategic and funding
options with the objectives of strengthening its balance sheet and
working capital position.

Reuters.