By IRENE CHAPPLE
Designer Textiles' share price slipped yesterday after the company announced a net profit of $3.4 million and the retirement of chief executive Philip Moller.
Designer's shares dropped 10.7 per cent to 92c after the announcement despite the profit being 4.3 per cent up on last year's $3.26 million.
The
profit came from revenue of $60.2 million, 4 per cent down on last year's $63.1 million.
Designer Textiles is a lightly-traded stock and one broker said yesterday the result was good but was smothered by the release of larger companies' results.
Last year, Designer Textiles was a sharemarket sweetheart, topping the rankings with a 143.9 per cent rise in its share price.
It hasn't been so successful this year, its price falling 8 per cent since January 3.
The company said sales revenue fell because of less-profitable domestic lines being terminated and lower export sales from its Brisbane-based Logan Textiles unit, which was still being "repositioned".
The reductions were offset by the growth in domestic and export merino wool sales by Designer Textiles International.
A fully imputed dividend of 3c a share, to be paid on September 30, will bring the year's total up to 4.125c a share.
Moller, who is now a company director, will be replaced as chief executive by fabric importer Charles Parsons' managing director Mark Bilton in October.
Moller said that "overall this has been a solid year where good progress has been achieved across all business operations. We are well positioned for future growth."
