FJ Benjamin FY09 full year result

Turnover -12%
Gross profit -15%
Rental +10%
Operating profit -65%

Net loss of 2,661 compare to profit 14,804 of previous year. Report highlight the underlying profit is 4,065 excluding the one off item and forex loss.

Fixed deposit 14,008
Cash on hand 19,346
Borrowing 53,505
Net borrowing is 20,151

Net cash from operating activities 21,781

Cash at end of FY is 14,823, after minus off the bank overdraft 18,531. I suppose the overdraft has been included in the current borrowing. The cashflow is a bit tight, after comparing the real cash on hand vs net borrowing. The group has to watch over the cost tightly. However, if the operating cashflow remain stable, it should be able to pay off the borrowing.

Although expenses come down together with the turnover, it is not enough to offset the impact. This highlight the difficult retail environment, luxury segment is not being spared. The result is uninspiring. Unless there is a clear indication of retail sentiment turn around, the business would remain challenging.