Hi,is anyone out there following Vita Group?An announcement on...

Hi,
is anyone out there following Vita Group?

An announcement on the 6^th of June seems to have triggered the recent steep decline. I note that profit is down and they are going to cut back on Fone Zone stores, but their Apple business, Next Byte, is performing ahead of expectation. The current fall seems to be more than is justified.

Here is the announcement of the 6^th of June:-

6 June 2008

Vita Group Limited (ASX: VTG) Trading Update for Year Ending 30 June 2008

Vita Group Limited (VTG) now expects to record $18 million to $19 million EBITDA in this Financial Year, down from previous guidance of $23.5 million to $24.5 million, as a result of softening retail sales within the Fone Zone business.

The widely reported decline in consumer retail spending in recent months appears to be delaying the replacement of existing mobile phone handsets and has led to a decrease in revenue and profit for the Fone Zone business.

As a result, the Company will undertake a realignment of some of its Fone Zone stores in the coming months. Some stores will be relocated, a number will be converted to Next Byte stores, and a number of under-performing stores will be closed. The profit impact arising from the impairment of assets associated with this realignment is $1.5 - $2.0 million and is included in the revised outlook for the current financial year.

Next Byte, Apple's largest Premium Reseller, is performing ahead of expectations and further expansion is planned.

For further information, please contact:
David McMahon
CEO, Vita Group Ltd
041 9 444 444
www.vitagroup.com.au