Business results: Michael Hill, Baycorp, Steel & Tube

Michael Hill

Michael Hill International yesterday posted a record half-year net profit of $12.2 million for the six months ended December.

The profit was up 11.6 percent from the $10.9 million posted for the previous year's December half.

A fully imputed interim dividend of 9c a share was also declared, up from 8cps.

The profit was achieved on trading revenue of $152.7 million, up 9.3 percent on the $139.8 million for the same time the previous year.

Revenue at Michael Hill's New Zealand operations rose 4.5 percent to $48.35 million, with earnings before interest and tax (EBIT) up 2.7 percent to $6.9 million.

Same store sales in New Zealand rose 3.8 percent during the six months.

One new store opened during the period at Glenfield in Auckland. At December 31, there were 47 stores operating in New Zealand.

Australian operations improved revenue by 10.8 percent to $99.6 million, with EBIT up 13 percent to $12.34 million.

Seven new stores were opened across the Ditch during the period, bringing the total number of Michael Hill stores in Australia to 100.

Canada also boosted its revenue, which rose 40.8 percent to $4.67 million. Canadian same stores sales rose 4.9 percent. The Canadian operations booked a loss of $208,000 for the six months, which was a 47.7 percent improvement on the previous year.

Three new stores opened in Canada during the period, bringing the Canadian total to seven.

The group said it would continue its strategy of "controlled profitable growth" and was evaluating more new stores in all three countries it operated in.

Michael Hill shares closed yesterday 15c up at $7.60.

Baycorp Advantage

Debt collector Baycorp Advantage yesterday issued a December-half profit of A$19.5 million ($21.63 million) and its first dividend in two years.

Baycorp's profit follows a December-half loss of A$149.8 million in 2003.

Adjusted net profit (before significant items, write-downs and amortisation of goodwill) was A$16.8 million, 19 per cent up on the year before.

It will pay an interim dividend of 6Ac a share, fully imputed for New Zealand shareholders and fully franked for those in Australia, on March 23.

Baycorp told the NZX it would distribute between 70 per cent and 90 per cent of attributable profits. Adjusted earnings per share were 7.4Ac, from 6.2Ac.

Managing director Andrew Want said the profit reflected the resilience of Baycorp's credit bureau and information services business.

Baycorp shares closed down 21c to $3.44 yesterday.

Steel & Tube

Thriving construction activity has helped Steel & Tube's half-year profit to hit a fresh high.

New Zealand's largest supplier of steel and allied products yesterday disclosed a net profit of $18.6 million for the six months to December 31, up $6.6 million, or 55 per cent, on the previous year.

"Commercial construction and infrastructure activity have reached record levels, while the demand for new residential housing has continued at near-record levels," said chief executive Nick Calavrias.

Any softening in residential building was likely to be offset by more growth in commercial construction, he said.

Demand from the rural sector was expected to increase in the months ahead, in line with normal seasonal trends.

Shares in Steel & Tube closed down 13c at $5.30 last night.