Metcash profit set for a hit

Friday 30th of March 2012 11:22:32 AM By AAP

Franklins supermarket owner Metcash is set to announce impairment charges that will impact on its net profit.

The grocery wholesaler's shares entered a trading halt on Friday ahead of finalisation of the charges.

"A trading halt is requested pending a board meeting on Monday (April 2) to consider management recommendations which, if agreed to by the board, could result in impairment charges," Metcash said in a statement on Friday.

An announcement on the charges is expected after the board meeting.

Metcash posted a profit of $94.4 million in the six months to September, 2011.

It had forecast earnings per share for its full year, which ends on March 31, to grow by low- to mid-single digits.

Metcash bought 80 Franklins stores for $215 million in 2011, and is in the process of selling the supermarkets to independent retailers.