KEY POINTS:
Bookseller A&R Whitcoulls remains optimistic about next year's earnings, despite posting a A$5.6 million ($6.5 million) full-year loss.
The company, which owns the Whitcoulls, Bennetts Tertiary and Borders bookstores in New Zealand, said earnings before interest, tax, depreciation and amortisation, excluding the impact of one-off items and excluding the post-acquisition results of Borders, was A$16 million, compared with A$18.8 million last year.
Trading revenue was up 9 per cent, to A$433.6 million.
The company, which is owned by private equity fund Pacific Equity Partners, said profits were affected by one-off items such as the acquisition of the Borders bookstores this year, and investment in the company's internet sales platform and its new instore Print-on-Demand technology.
The group had acquired the 30 Asia-Pacific Borders stores in June, and chairman Rod Walker said it was on track to realise synergy benefits.
After the initial cost of integrating the A&R Whitcoulls and Borders systems, group trading year to date was showing positive like-for-like sales.
Walker was confident all pre-acquisition forecasts would be achieved, despite the generally tough conditions for retail.
A strong Christmas was also on the cards, said Walker.
"During more difficult economic times, higher priced discretionary products tend to be impacted more than products like the books and DVDs we sell. Reading or enjoying a DVD will always be very affordable forms of entertainment. There is often a migration towards products like these during the Christmas period as popular and affordable gifts."
