Kirkcaldie reports profit rise

Upmarket Wellington department store Kirkcaldie's today reported an 11 per cent rise in its full year profit.

The listed retailer said its preliminary after tax profit for the year to August 31 was $1.21 million, compared with $1.01 million a year earlier.

The result was based on total operating revenue of $43.6m, compared with $41.6m the previous year.

Retail sales at Kirkcaldie's flagship 142-year-old Lambton Quay store and neighbouring Harbour City Centre rose by 5.2 per cent to a record $39.38m.

Rental income from the Harbour City Centre continued to improve. At balance date the centre was 98 per cent tenanted, with an average lease term of 2.4 years.

Gross rentals for the year increased by 4.3 per cent to $4.21m, including rent paid by Kirkcaldie's retail operations, which have expanded into Harbour City.

"These outcomes were hard won given the increasingly spirited retail and employment marketplace," Kirkcaldie's said.

Kirkcaldie's will pay an unimputed dividend of 5 cents per share on December 12, taking total dividends for the year to 12 cents per share.

Looking ahead, sales since balance date had been a mixed bag, " affected on one hand by the uncertainty surrounding the general election and, on the other hand, boosted by the exciting events held in the capital", Kirkcaldie's said.

The search for a new managing director is continuing, after Richard Holden stepped down in August following a polo injury.

Finance manager Nick Bartle is acting as company chief until a replacement is found.

Shares in Kirkcaldie's last traded steady at $2.60, against a year high of $2.80 touched last month.

- NZPA