KEY POINTS:
Michael Hill International reported a 33.2 per cent rise in annual net profit after tax to $21 million, after strong trading in the first three quarters of the year.
The final quarter to June 30 proved much more challenging and constrained the same store growth to more modest levels than expected, the company said today.
The net profit was up from $15.8 million a year earlier, while revenue from ordinary activities rose 13.2 per cent to $350.2 million.
A fully imputed final dividend of 16c will be paid, giving a full year dividend of 26c, up 13 per cent on the previous year.
Chairman Michael Hill said a focus on margin management for the jewellery chain during the year had helped offset the weaker than expected final quarter.
New Zealand retail operations increased revenue 7 per cent to $97.4m, with same store sales up 4.6 per cent for the year compared to a 2.4 per cent rise the previous year.
Earnings before interest and tax (ebit) in this country were up 33.3 per cent to $13.6m. As at June 30, 50 New Zealand stores were operating, following the opening of two new stores and one closure during the year.
In Australia the retail segment increased revenue 13.2 per cent to $225.8m, with ebit of $20.7m from $15.7m in the previous year.
In Australian dollars, total revenue lifted 10.2 per cent with same store sales up 3.4 per cent, following a 1.3 per cent decrease the previous year.
During the year 12 new stores opened in Australia, with two closed, taking the total to 126.
In Canada four new stores were opened during the year, taking the total to 16.
Canadian retail revenue increased 59.5 per cent to $25m, while in Canadian dollar terms total revenue lifted 55 per cent, with same store sales up 2.9 per cent compared to 6.9 per cent the previous year.
The company had an operating deficit in Canada of $5000, compared to a deficit of $957,000 the year before.
Under a share buy-back scheme announced in March, the company had bought back around 957,000 of its shares as of June 30. The target is to buy up to 1.9m shares.
The intention was to cancel the shares bought back so far next financial year, Mr Hill said.
The buy-back programme remained in place until next March and the company had the ability to buy more MHI shares at any time until the closing date.
A 10 for one share split was to take place on October 29, to enhance liquidity in the trading of MHI shares, Mr Hill said.
The results for the year had been achieved with a focus on same store revenue growth and margin management.
"The group's philosophy of controlled profitable growth will continue and further new stores are being evaluated for all three countries as opportunities arise."
MHI shares closed at $8.80 yesterday, having ranged between $10.10 and $6.61 in the past year.
Shortly after the sharemarket opened today MHI shares were up 42c, or 4.8pc, to $9.22.
- NZPA
