Business Description:
Fantastic Holdings Limited (FAN) is an Australian furniture retailers and manufacturer operating over 125 stores across five furniture retail chains including, national retailers Fantastic Furniture, Plush and Dare Gallery as well as Le Cornu in South Australia and the Northern Territory and the Original Mattress Factory in New South Wales. FAN is also a sofa and has mattress manufacturing facilities operating a supply chain to service all FAN’s retail brands.

Strategy Analysis:
People investment has been an important ingredient in FAN's long term multi-brand strategy. In recent years, the Group has up skilled individual business unit leadership and centralised functional expertise. In the last year, under the sponsorship of the Managing Director, the Group also relocated key members of its product design, sourcing and quality control team to Dongguan, China. This provides a greater capacity to build ongoing supplier partnerships, reduce product costs and improve quality control standards. From November 2009, the Group undertook significant investment in price reductions, marketing and product availability in order to consolidate its leadership position at the budget end of the market. . Fantastic reported NPAT up 5.1% to $19.46m for the year ended 30 June 2011. Revenue from ordinary activities were $436.71m, up 4.2% from last year. Basic and Diluted EPS were 18.95 cents compared to 18.08 cents last year. Net operating cash flow was $32.61m compared to $11.01m last year. The final dividend declared was 6 cents, taking the full year dividend to 11 cents compared with 10.25 cents last year.