Globe International Limited total revenues were A$197.3 million ($147.6 mm) with EBITDA of A$6.2 million ($4.6 mm)for the year ended 30 June 2006. The significant turnaround experienced in the second half of the year resulted in an EBITDA of A$5 million for the half.
The Chief Executive Officer of Globe, Matt Hill, said today that the annual result had been
impacted by the previously advised poor first quarter in North America, however since that time
the business had performed strongly.
“The Globe brand internationally continues to show strong momentum with consistent growth in
footwear units sold in Australia, Europe and North America.
“The Australia and New Zealand streetwear business continues to deliver good profitability.”
“A notable achievement of the companys performance over the last year has been the significant
turnaround in net operating cash flow from a negative A$7.4 million in FY 2005 to a positive
A$2.8 million for the year ended 30 June 2006. The increase in net debt during the year was
primarily as a result of the acquisition of the retail skateboard and apparel company, PSC, and
other investment activities,” Mr. Hill said.
In Australia and New Zealand, total revenues remained steady at A$110.7 million with an EBITDA
of A$4.5 million. In this market, the wholesale apparel sector remained strong with good brand
Although results in North America were impacted by a poor first quarter, full year total revenues
of A$64.3 million and an EBITDA of A$1.2 million were achieved. In the second half of the year,
EBITDA was A$2.9 million, 64% up on the prior corresponding period. The strong recovery
experienced in the second half has continued to be evident, particularly in Globe branded
footwear, whilst the hardgoods market remains highly competitive.
European total revenues of A$22.3 million were up 7% in local currency and EBITDA at A$0.5
million was also up on the previous year. Whilst the European footwear market has been
generally flat, Globe has experienced strong sell through, with unit volumes increasing.
The UK, Austria, and Spain are showing good progress under the companys recently introduced
direct distribution model with both chain and independent retailers showing strong support for the
brand in markets that offer potential for growth.
Earlier this year the company announced that it had appointed investment bankers, the Sage
Group, to undertake a detailed review of the business and brand assets as part of the companys
long-term strategy to improve efficiency and performance. During that time, Sage has been in
discussions with a number of external parties regarding a range of options for the business that
will maximize shareholder value. These discussions are continuing and recommendations will be
put to Directors for consideration in the near future.