KEY POINTS:
Life Pharmacy said today it expected to post an annual net loss of $500,000, excluding a $6 million write-down on investments.
The company posted an annual profit of $1.1m the previous year, including a $572,000 one-off item.
The board decided to write down its investment in associates after reviewing the last two years' trading and financial forecasts, chairwoman Liz Coutts said.
Christmas trading had been buoyant for the group, although sales at new and refurbished stores had lagged, notably in Porirua and Sylvia Park.
Also dragging on the result were head office expenses and write-offs.
The company was talking to potential investors about a private share placement, seeking funds to grow the business, Ms Coutts said.
Life Pharmacy holds a 49 percent shareholding in 17 pharmacy companies, representing 16 of the 21 Life Pharmacy stores in New Zealand.
Shares in the company closed last Wednesday at 70c, having traded between 50c and 98c in the last 12 months.
- NZPA
