The financial results for the six months ending June 30, 2007 showed net Profit of $31 million compared to net loss of $6.9 million for the comparative period in 2006. Sales were $3,116 million compared to $2,528 million for the comparable period last year.
The results for the last three months though significantly better than the previous year, fell short of the results in the first quarter due primarily to a decline in retail activity. The Wholesale, Projects and Agro Grace divisions had relatively good performances during the review period and contributed to the overall profits.
The Retail Division experienced a marginal decline in revenue compared to the first quarter. Sales for both construction and home improvement categories softened, relative to the very brisk period of activity experienced in the first three months. Notwithstanding, same-store sales grew by 15% over the corresponding Quarter 2006.
Initiatives aimed at improving key item availability, merchandising and consumer interaction are well on the way with encouraging results recorded to date.
During the latter half of the Quarter, market presence was significantly increased through a series of communication initiatives aimed at reinforcing the .Range.> and .Quality. attributes while motivating consumers to consider home improvement projects. We anticipate that the full impact of these initiatives will be realized during subsequent periods.
The Wholesale and Special Projects division experienced a robust performance for the second quarter following on a strong performance in the first quarter. Sales in the division exceeded projections and prior year sales due to the repositioning of the business as the preferred supplier in the trade and also initiatives in the projects sector of the business.
The Agricultural Division continues to produce good results achieving overall revenue and profit targets for the period. The division remains the dominant supplier of agricultural inputs, particularly to the crop sector.
We have completed the selection process for the new Information Technology system and are currently in training mode to effect full implementation by November 2007. To complement the new system, a review was done on the distribution centre and additional investments will be made to enhance efficiencies in this area. The investment in these areas will be J $118 Million. We wish to thank our employees, customers and other stakeholders for their continued commitment and support.
