Result gives Pumpkin Patch push to boost rollout

Pumpkin Patch had planned eight or nine new stores in the Northern Hemisphere this financial year, but it is now planning for 10 to 15. Picture / Martin Sykes

Pumpkin Patch is speeding up the rollout of its stores in Britain and the US after reporting a strong full-year result yesterday.

Executive chairman Greg Muir said difficult trading conditions for the children's-wear manufacturer and retailer in Australia and New Zealand were being countered by encouraging results in the Northern Hemisphere.

Annual results to July 31 showed net profit after tax of $28.5 million, up 15.9 per cent on 2005. Group operating revenue for the expanding company was $311.5 million, up 11.1 per cent for the year.

Muir said Northern Hemisphere results had been better than expected and the US and UK expansion was now "beyond an experiment". The company had planned eight or nine new stores in the this financial year, but it was now planning for 10 to 15.

In the US, where Pumpkin Patch has opened six stores in the past year in Pacific coast states, the company was looking at expanding into Arizona, and later into the south.

Retail analyst Guy Hallwright of stock broker Forsyth Barr described the Pumpkin Patch result as solid, and slightly better than expected.

Hallwright had anticipated a slight increase in the dividend, which was the same as the first half of the year at 4.25c per share, taking the annual dividend to 8.5c.

Shares in Pumpkin Patch rose 9c to $4.07 yesterday.

Muir said the biggest factor facing the company was the subdued and "fickle" retail trading conditions in New Zealand and Australia.

New Zealand sales were up 3.2 per cent to $59.7 million with tough trading conditions carrying over from the first to the second half. Australian sales were $163.5 million, up 3.8 per cent on last year though this figure was influenced by currency values.

Muir said the New Zealand retail market was slightly more difficult than Australia.

He said operating in four markets had a positive spinoff - even if two or three markets were tough going, at least one was likely to be heading up.

Despite transtasman difficulties Pumpkin Patch "continued to dominate the children's-wear sector in these markets".