Briscoe Group announces special share payout

Rod Duke, managing director of Briscoe Group.Photo / Dean Purcell

Briscoe Group has today announced that it will pay shareholders a special dividend of 6 cents per share following strong sales.

In a market update, the board said the dividend would be paid on January 20, 2021 with the share register closing on December 24 to determine entitlements. The payment also includes a supplementary payment to overseas shareholders of 0.01c per share.

Briscoe earlier this year announced it would pay a dividend of 9 cents per share for the six-month period ending July.

"We're delighted to be able to provide this additional return to our shareholders in a year which has produced incredible highs and lows," Briscoe board chair Dame Rosanne Meo said in a statement.

"The group's cash position is very strong as a result of the previously cancelled $28 million dividend back in March but also from the continued exceptional trading experienced since New Zealand came out of lockdown in May," Meo said.

"This sustained performance assisted us in being able to repay all of the $11.5 million of wage subsidy for which we received a huge amount of positive customer and shareholder feedback. We're extremely proud of how we supported our employees in full through-out this difficult year and there were no redundancies or permanent store closures."

The retail chain's sales surged by 15 per cent in the third quarter to $161.3 million.

Homeware sales from Briscoes increased by 12.28 per cent over the quarter to $98.7m, while sporting goods sales from Rebel Sport were $62.6m, an increase of 19.48 per cent over the equivalent quarter last year.

The group's year-to-date numbers - covering the period from January 27 to October 25 - showed sales were up 2.35 per cent at $453.7m.

The group's homeware segment increased sales by 1.30 per cent during this period and the sporting goods segment by 4.14 per cent.

Managing director Rod Duke, who is also the group's largest shareholder, said trading continued to be strong as the company, and the rest of the retail sector, approached the mid-way point of a crucial quarter.

"Our Black Friday promotions produced record sales for the Group which augurs well for trading in the lead-up to Christmas and through to our year-end on 31 January 2021. I am confident that with the current trading momentum we can produce a full-year result in excess of the $62.6 million reported for the year ended January 2020," Duke said.

"The company is performing extremely well."

Briscoe Group will report its fourth quarter sales on February 9, and its full-year result, including announcement of final dividend, on March 16.

Company shares last traded at $4.58.