KEY POINTS:
Michael Hill is counting gold after the value of his interests in the publicly listed jeweller that shares his name increased by $27 million in the past five months.
Michael Hill International shares closed yesterday at $10 - up $1.47 or 12 per cent on the $8.53 five months ago.
Queenstown-based Hill - the founder and largest single shareholder - has 10.11 million shares or 25.1 per cent of shares, while family interests control another 8.5 million or 21.5 per cent. In total, Hill family interests were worth around $186 million at yesterday's close.
Despite weakness in the wider retail sector, particularly clothing, Michael Hill International has performed strongly in recent months, boosting the price of the tightly held shares.
The stock reached an all-time high of $10.10 on June 29 and fell back to $9.88 before rallying by 12 cents yesterday to close at $10.
The share price moved up sharply on Friday when the company reported earnings before interest and tax to June 30 were up 33 per cent to $13.6 million.
Growth in the share price had undermined the buyback offer of $9.50 for 1.9 million shares.
But yesterday chief executive Mike Parsell was confident the company would mop up the full 1.9 million.
"We are nearly there.
"We have recently picked up 100,000 to 150,000 shares and I believe there is another 250,000 out there," Parsell said.
Asked if the company had looked at utilising capital to fund expansion, Parsell said it was deemed better to return the capital than invest in any acquisition.
Expansion - the company is established in New Zealand and Australia and the new Canadian operation is paying its own way - was not intensive, he said. The company enjoyed good cash flow and so would not have to raise significant levels of debt.
