Clive Peeters Looking For Sub $20M To Retire Bank Debt By David Richards | Tuesday | 09/06/2009
The CEO of Clive Peeters claims that he is extremely close to making an announcement on the future of the Victorian based retailers who is looking to raise sub $20M in an effort to retire bank debt.
He claims that future operations of Clive Peeters who last year called in KPG to conduct a review of the group's operations can be funded out of current cash flow and that any capital raising will be used to strengthen the Companies balance sheets.
Greg Smith also praised the performance of arch rival JB Hi-Fi who yesterday said that they would deliver a 41% increase in profits and a 26% increase in sales.
"They are in their zone right now and they are excellent operators who I believe will continue to grow as they have the right locations and the right mix of products. At Clive Peeters we are seeing excellent growth in the consumer electronics area where we compete with JB Hi Fi. For example sales of display TV panels make up 25% of our overall sales and despite stock problems earlier this year we are now seeing new stock flow through into the channel however there are still problems with several size categories especially in the smaller screen size" said Smith.
"Appliances are still weak and I believe that trading will be tough right across the board for another 12 months. What will help is the new home stimulus. This will show up later this year as first home buyers start to buy appliances. We will also see growth from new consumer electronic products as new models get launched".
"I am confident that we will meet our targets and that we will have an announcement re our future within the next ten days. We are talking to several parties but I cannot announce comment till we make an announcement to the ASX".
CPR Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
