Broadway posts $1.86m loss

Broadway Industries reported a loss of $1.86 million in the year to June 30 compared to a profit of $1.17 million in the same period last year.

The company said on Friday that it had borrowed $2 million from South Canterbury Finance to provide working capital while it progresses a rights issue to raise money.

Sales revenue of $51.7 million was up from to $46.7 million last year.

No dividend was declared.

The company said sales achieved by photographic equipment unit H. E. Perry decreased by 10.5 per cent.

The company's Mercer businesses' earnings before interest and tax were $1.52 million, down from $2 million last year.

"The directors are confident that the group will return to acceptable profitability in the 2009 financial year," the company said.

An NZX waiver was received because South Canterbury Finance is connected with the company's shareholder Allan Hubbard. The $2 million loan will be repaid out of rights issue proceeds.

- NZPA