Pumpkin Patch lifts first half profit by 126 per cent

Sharemarket darling Pumpkin Patch today reported a 129 per cent surge in its half year net profit after tax (npat).

The children's clothing retailer posted npat of $12.5m for the six months ended January 31, up from $5.5m for the same time the previous year.

Total operating revenue grew 39 per cent to $138.9m, from $99.7m.

Earnings per share were also up 129 per cent, to 7.53c, from 3.28c.

A fully imputed interim dividend of 3.75 cents per share will be paid, in line with the company's policy of distributing 50 per cent of npat.

The company reaffirmed its forecast that the full year npat will be at least $23m.

Pumpkin Patch said in a statement the robust half year earnings were the result of continued strong trading across all segments, especially the New Zealand, Australian, and British retail markets, and growth in wholesale accounts.

Earnings before interest and tax (ebit) from the New Zealand retail segment grew 32 per cent to $4.6m.

Australian retail ebit was up 75 per cent to $11.8m.

The company has 30 Pumpkin Patch stores and 14 Urban Angel girl stores in New Zealand, and said there were no plans to expand here this year.

The company has 68 stores in Australia and plans to open six more before the end of the year.

The company's British operations also gained in the period, with turnover up 50 per cent to £5.1m ($13.6m) for the period.

Ebit was $300,000, up from an ebit loss of $1.2m for the same period the previous year.

Pumpkin Patch said the improvement in its British operations was particularly pleasing given the soft overall retail environment in Britain for the period.

Four new British stores have opened in the year to date taking total store numbers to 13. The start up costs of these new stores were full expenses in this half year. Two more new stores are planned in Britain this financial year.

The company's wholesale business continued to grow, with increased orders from major wholesale customers in the United States, the Middle East, and Ireland.

Wholesale turnover totalled $16m, up 148 per cent up on the same period in 2004. Wholesale ebit for the period was $2.4m, up 165 per cent.

In morning trade today shares in the company were up 2c at $3.10. Pumpkin Patch listed on the stock exchange last June at an issue price of $1.25.

- NZPA