Electrical retailer JB Hi-Fi Ltd
(ASX:JBH) has announced plans to buyback 10 per cent of its shares and restructure its underperforming Clive Anthonys business.
The restructure of Clive Anthonys is expected to cost around $24.8 million and has resulted in a downgraded net profit forecast.
While underlying profit is expected to remain in line with guidance, the restructure will mean that net profit for the full 2011 financial year will fall to between $108.5 million and $113.5 million.
The latest forecast is down from the $118 million net profit JB Hi-Fi generated in fiscal 2010.
The off-market share buyback is valued at $170 million with an earnings impact of $700,000 that equates to around one month's financing cost.
In the first half of its 2011 financial year, JB Hi-Fi’s net profit rose 16 per cent to $87.9 million.
