PRG advises March year profit of $46.6m

Pacific Retail Group (PRG) today turned around a loss in the previous financial year to report a profit of $46.6 million, despite its British appliance operation PowerHouse continuing to lose money, the company said.

PRG lost $22.6m in 2004 after the purchase of the third-largest British specialist appliance retailer, PowerHouse, from receivers in 2003.

Majority owned by entrepreneur Eric Watson's Logan Corporation, PRG is deciding whether to offload its profitable finance unit by a trade sale or initial public offering.

The retail group also owns lingerie manufacturer Bendon and Living and homeware business Living and Giving, having sold its Noel Leeming, Bond & Bond and Big Byte stores in August.

PowerHouse was forecast to make a further operating loss in 2006, and is targeted to break even in 2007, PRG said in a statement.