SYDNEY: UnderCoverWear is expecting a "disappointing" overall financial result for the year to June 30, 2010.
The party plan lingerie company said its second half figure would show a small net operating loss. It reported this will result in a full year net profit slighly lower than the first half reported net result of $893,000.
The company said the result is after one-off restructuring costs associated with the retirement of its former chief executive officer (CEO), Elaine Vincent, as well as various restructuring costs associated with the repositioning of the company.
New CEO Simon Pervan said the business has been completely restructured with refocused product for its customers. New personnel to head up design, inventory, planning operations, finance and sales have been implemented.
“...this will position UnderCoverWear for a return to profit growth in 2011,” he said.
Pervan took on the role of CEO on March 31 and was previously the brand’s national sales and marketing manager. Vincent departed from the Board of Directors on March 31 after 15 years with the company.