29 August 2014,

GREENCROSS Limited (ASX: GXL) has recapped a year of great expansion, and is firm on continuing this trend.

Store and clinic numbers have risen from 93 to 298 across the financial year, 21 of these a product of organic growth, and 42 through the acquisition of City Farmers.

GXL’s merger with Mammoth earlier this year, the owner and operator of Petbarn and Animates, took the company from an east coast veterinary service provider to an Australasian full service pet care provider.

GXL’s market cap has risen from $174 million to $1.1 billion since June 30 last year.

The company, however, has posted a net loss of $128 million for the year, down from a $7.8 million profit the year prior.

The profit slump was put down to a $130 million impairment charge on goodwill stemming from its Mammoth merger.

Excluding this, pro forma net profit after tax actually rose 45 per cent to $21.6 million.

For an industry growing at an average rate of five per cent per annum, GXL reported in its full year profit announcement that its major threat to growth is the major supermarket chains.

GXL intends to counteract this through initiatives including offering exclusive private label brands, further co-location – stores incorporating retail and pet care – and thus cross promotion of a single loyalty offer.

The company is confident in the synergies it has established, and believes it is in a strong position to take its 7.5 per cent market share up to 20 per cent.

The full year announcement also included an update to GXL’s board and management, stating that managing director and company founder Glen Richards (pictured) will be stepping down to a non-executive director role in March 2015.







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