Globe International reported a 9.5% decrease in sales for the fiscal first half to A$98.3 million ($73.9 mm) from A$108.6 million ($79.7 mm) during last year's first half. The company saw EBITDA for the first half decrease 83.1% to A$1.2 million ($0.9 mm) from A$6.9 million ($5.1 mm) last year. Net profit after tax fell to a loss of A$740,000 ($0.6 mm) from a gain of A$2.8 million ($2.0 mm) during the same period last year.

Globe’s Chief Executive, Matt Hill said that the company’s cash position and balance sheet remained robust.
“The company remains on track with its previously announced forecast to deliver a full year EBITDA of approximately $10 million being similar to Globe’s 2005 year result,” Matt Hill said.

“This financial year started slowly for us with a disappointing first quarter, particularly in North
America. However since that time, we have seen positive brand momentum on a much improved operational base and expect a significantly improved second half for the current financial year.

“Our major brands, in particular Globe and World Industries are performing well and are showing good strength and market penetration.

“Our continuing investment in Globe brand marketing has been rewarded with Globe’s marquis surf event, the Globe WCT Fiji, being voted recently by professional surfers as the best surfing event on last year’s Fosters World Championship Tour.

“The 2006 year second quarter improvement that we have seen indicates that our strategy for growth remains on track as does our forecast for the full financial year.

“The previously announced strategic review that the Sage Group is undertaking into the business is progressing. Whilst it is too early to speculate at this stage on the outcome of this review, a number of options will be assessed for presentation to the Board when the review is completed.”