Long-running Perth-based retailer Betts Group is continuing to struggle, with the business incurring its fourth loss in seven years, while annual sales have halved over the same period.
Long-running Perth-based retailer Betts Group is continuing to struggle, with the business incurring its fourth loss in seven years, while annual sales have halved over the same period.
The family-owned company suffered a loss of $3.9 million in the year to June 2024 after a sharp fall in sales, according to financial statements lodged with the Australian Securities and Investments Commission.
That followed a profit of just $25,000 in the prior year.
The challenges facing the footwear retailer are highlighted by looking at its performance over the past seven financial years.
Over that time, it has reported four losses totalling $16.8 million.
The losses have been interspersed with three annual profits, worth just $1.3 million.
Its balance sheet shows accumulated losses of $19.7 million and total equity of minus $12.9 million.
The value of annual sales has shrunk, from $105 million in FY18 to $51.5 million in FY24.
Directors Andrew and Daniel Breckler, whose forebears established the business in 1892, acknowledged FY24 was disappointing.
“Consumer demand softened during the year with rising interest rates and cost of living pressures, which led to the disappointing result for the year,” they said in their directors’ report.
“Management implemented a number of initiatives during the year including negotiating better lease deals on under-performing stores, closing some under-performing stores and reducing overhead costs.”
The directors added that online sales performed strongly following the move to a new website and they expect further growth in online sales with a move into New Zealand.
The business still has a substantial retail network across Australia, with 58 stores listed on its website (including 16 in Western Australia).
That is down from about 200 in 2018, before the business responded to the rise of online retailing by slashing the size of its bricks-and-mortar network.
It remains a substantial employer, with staff numbers increasing in recent years to 398.
The group’s financial performance continues to be weighed down by substantial debts.
It owes $8 million to the Commonwealth Bank and $1.6 million to the Breckler family.
The maturity date for its directors’ loans, which carry an interest rate of 12 per cent per annum, was extended to October next year.
The group’s finance expense increased to $2.9 million last financial year.
No dividends have been paid and the directors did not recommend a dividend.
Business News has approached Betts for comment.
