Globe International saw net profit after tax (NPAT) for the first half improve by $4.8 million, reflecting an NPAT of $0.3 million for the December 31, 2007 half year, compared to a loss of $4.5 million for the previous corresponding period.


Total revenue for the continuing business grew despite being negatively
impacted by the translation of U.S. revenue into Australian dollars following the weakening of the U.S. currency. Total revenue increased for the half by 2.8% over the previous corresponding period to $63.5 million. Excluding impact of changes in foreign currency, group net sales grew by over 10% compared to the same period last year.


Regionally, in terms of net sales revenues, North America increased by 4.0% (17.8% in local currency), Europe by 2.5% (6.4% in local currency) and Australasia by 1.6%.


EBITDA of $1.1 million is to be compared to the previous corresponding period loss of $1.0 million. This is after accounting for in the 31 December 2007 half year, legal expenses of $1.8 million associated with a disputed trade mark issue in the United Kingdom.


In North America revenues in local currency grew by 17.8%, with hardgoods in particular being a stand out performer.


Globe Europe continues to experience strong margins; assisted in part by currency gains. Revenue growth of 6.4% in local currency was largely driven by apparel and hardgoods growth.


“In Australia and New Zealand, Globe footwear and hardgoods are showing good traction. Apparel is also showing solid growth trajectory in this territory. This regional business is also benefiting from currency gains in gross margins. Operating cash flow for the half remained positive at $0.8 million and cash balances remain strong following the $8.6 million post period end return of capital from the sale of the World Industries trademark in June 2007,” Matt Hill said.


Outlook


“Our first half is ahead of the same period last year and key categories such as footwear, hardgoods and apparel all displayed solid growth. However, given emerging concerns regarding the state of the US economy with a potential weakening in consumer demand, we will continue to manage the business prudently and be prepared to rapidly adapt to any changed market conditions. We anticipate that skate hardgoods growth will be ongoing, and that the recent gains we have experienced in apparel and new footwear ranges will also continue.”