Briscoe profits up, as Kathmandu takeover looms

Briscoe Group launched its full takeover of Kathmandu. Photo / File

Briscoe Group, the retail chain mounting a hostile takeover of Kathmandu Holdings, says first-half profit rose at least 8.1 percent, outpacing sales growth in the period, as the company continued to fatten its margins.

The company expects to report net profit of at least $20 million in the six months ending July 26, up from $18.5 million a year earlier. That outpaced the 5.4 per cent gain in first-half sales to $244 million, driven by a 10 per cent gain in sporting goods sales and a revenue gain of 3 percent from its homeware stores.

Briscoe's second-quarter sales rose 6.5 per cent to $116.7 million, and were up 5.4 per cent on a same-store basis. Of that, the homeware segment lifted sales 5.3 percent and the sporting goods chain gained 5.9 per cent.

"Our bottom line is tracking well ahead of last year despite the late start to winter and the high levels of competitiveness across the retailing sectors in which we operate," managing director Rod Duke said in a statement. "The continued profit improvements flow from the increased levels of sales we are generating at significantly improved margins, as well as the ongoing improvements we are making in efficiency throughout the group."

Briscoe is in the middle of a takeover bid for outdoor equipment chain Kathmandu, offering Kathmandu shareholders five Briscoe shares for every nine Kathmandu shares as well as 20 cents, in a bid to buy the remaining 80.1 per cent of the stock it doesn't already own.

Briscoe shares, which are largely owned by Duke, last traded at $2.82, and have declined 5.1 per cent this year.