Briscoe optimistic for year after 51pc leap in first half

Briscoe said today its July half year profit was up 51 per cent to $10.2 million and the retailer was cautiously optimistic for the full year.

Managing director Rod Duke said he was delighted with the first half.

"The first half of last year was a particularly disappointing period for us so we expected significant improvement on that this year.

"While we are confident of further improvement to the bottom line, we don't expect the increase over last year for the second half to be as significant as that achieved for the first six months."

The company lifted its dividend to 3cps from 2.75cps to be paid on September 26.

Total revenue lifted 11 per cent to $155.7m and pretax profit rose to $15.4m from $10.7m. Earnings per share rose to 4.8c form 3.2c.

Briscoe shares rose sharply last month after the company reported its second quarter sales and they rose another 8c to $1.41 today.

Gross margin rose from 33.20 per cent to 35.19, continuing the enhancement from last year. It was achieved by the previously reported reduction in the frequency of sales and depth of discounting and operational improvements in stock levels, product range and shrinkage.

Briscoes Homeware sales rose 10.7 per cent to $102.41m and sales at the Rebel Sport chain increased 12.61 per cent to $51.97m.

On a same store basis, Briscoes Homeware sales increased by 6.5 per cent, while Rebel Sport sales increased by 5.62 per cent.

Mr Duke said marketing changes implemented last year were having a significant effect. These included Rebel sponsoring Super 12 Rugby and both chains selling in-house brands.

Briscoes Homeware has 34 stores and plans new stores in Hamilton and Wellington.

At July 31, the company had no debt and $40m in cash.

- NZPA