Kathmandu Holdings Ltd
(ASX:KMD) has warned that the economic environment may continue to negatively impact consumer spending, a situation the retailer views as particularly concerning for its UK business.
Though the travel and adventure clothing retailer advises it's brand positioning and value proposition will give it resilience to deal with market conditions, it cautions that considerable uncertainty remains as to whether the global economy has fully turned the corner.
In the 2010 financial year Kathmandu’s profit fell 37 per cent because of costs associated with its initial public offering as well as paying back debt.
In its annual report Kathmandu says its IPO was completed successfully. Adding, that given the background of the GFC in recent years it has been very challenging to complete a successful capital raising for a new company in Australia or New Zealand.
While Kathmandu’s earnings were around 6 per cent lower than its forecast, its first ever dividend of 7 cents per share is higher than the 6.7 cent dividend initially projected in the IPO prospectus.
Kathmandu Holdings 2010 net profit fell to $7.54 million in the year to 31 July 2010.
