19th Sep 2013 09:58
LONDON (Alliance News) - CA Sperati PLC Thursday said it saw lower revenues in the six months to April 30, as its "aggressive" sales strategy failed make a dent in the period.
The button and trimming merchant said that is currently trading broadly in line with its last financial year, and has maintained a steady gross margin, despite reporting lower revenue of GBP94,447 for the six months to April 30, compared with GBP112,475 in revenue a year earlier.
CA Sperati said that its cost-cutting initiatives and a reduction in one-off exceptional items have led to a lowering of its cost base, which it said it expects to slow the decline in shareholder value.
However it said it is "in early stage negotiations with interest parties who might want to make use of its position as a listed company".
It also said that after entering a conditional contract with Knightspur Homes Limited for the sale of its freehold land and property based in Greenwich, for a total cash consideration of GBP415,000, that it will use the cash to settle certain outstanding creditors and purchase stock for any incoming contracts.
The company said that its customer base is well established, but there was little growth in the company's sector, and fewer new clients coming in to the market during the period.
It also said that its selling prices have remained relatively static, due to increased pressure to keep prices low amid increasing global competition.
Chairman Kevin Jackson stepped down on June 10 to pursue other business interests.
Sperati shares were quoted at 400.00 pence Thursday, unchanged.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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