Fantastic FY profit tumbles

Group in strategic review after higher costs, declining profitability hurt bottom line.

Fantastic Holdings (FAN) is pushing on with a strategic review as it forecasts tough retail competition and subdued consumer confidence amid a weak economic environment in Australia.

Net profit fell 35.6% to $13.5 million, from $21 million posted last year, on a drop off in second half sales at Fantastic Furniture, a decline in profitability of the group's Plush stores and higher rent and staffing costs. 

The result was just inside the group's net profit guidance of $13.5 million to $15.5 million. 

Sales were near flat, dropping 0.1% to $445.2 million, despite difficult trading conditions, the group said.  

It will pay a fully-franked final dividend of 3 cents, putting the total payout to 10.5 cents, a 19.2% fall on the 13 cents paid last year. 

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