PowerHouse predicts profit in second half

PowerHouse expects to make a profit in the second half of this financial year.

The business, bought from receivers by New Zealand's Pacific Retail Group (PRG) in September, reported a loss of NZ$46.4 million (£15.9 million) on sales of NZ$321.7 million (£110 million) in the year to March 31.

PowerHouse chief executive Peter Halkett said he plans to break even by September or October on a seasonally adjusted basis, and turn 'a small profit' in the six months to next March. However, over the full year, he expects a loss.

An IPO of PRG's New Zealand chains is planned to support PowerHouse and the development of lingerie arm Bendon.