LANDMARK WHITE (ASX: LMW) has reported a lower first half year net profit after tax of $172k compared to $184k in the previous half year, as the company moves towards setting up new franchises.
Revenue from continuing operations totalled $10.406 million down 1.2% from $10.528 million in the previous corresponding half year period.
LMW said revenues continues to be impacted by the soft property market and higher professional indemnity insurance premiums, costs associated with establishing franchising and higher doubtful debt provisioning were the principal factors influencing the lower result.
However the company said the franchising costs were a one off cost and expected to improve future profit.
“Under franchising, our traditional valuation revenues will be replaced by significantly lower but more consistent franchise and service fees. However with franchising of commercial valuation operations, we believe that more consistent and more profitable results will be achieved in future years,” LMW said.
LMW’s share price dipped 4.1% or 0.015 cents lower at $0.35 yesterday.
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