Briscoes profits down, dividend cut

Briscoe managing director Rod Duke says it's going to be another tough year for retailers. Photo/Brett Phibbs

Retailer Briscoe Group has reported a 48.2 per cent fall in annual profits and says it isn't counting on much, if any, improvement in the retail market in the coming year.

The $11.63 million profit in the year to January 25 compared to $22.44 million a year earlier.

Briscoe Group runs the Rebel Sport, Living & Giving and Briscoes Homeware stores.

The company cut its final dividend to 3.5c a share from 4.5c last year. The total dividend for the year of 4.5c a share is down from 8c last year and represents 82 per cent of net profit after tax. The final dividend was payable on May 1.

Sales of $388.47m were down 4.7 per cent on last year. Earnings before interest and tax declined 52.4 per cent to $15.11m.

Managing director Rod Duke said the company had been micro-managing its inventory and continually reviewing costs.

The first-half result was very disappointing but the cost control and efficiency drive helped produce a reasonable second half performance.

"We head into the new financial year with very clean inventories and a refined management structure that is up for the likely challenges of what is clearly going to be another tough year for retailers," he said.

The company opened a Briscoes Homeware store in Masterton, three new Living and Giving stores in Invercargill, Atrium in Auckland City, Queensgate in Lower Hutt, and closed a Living and Giving store in Bayfair, Tauranga.

"We are confident that Briscoe Group will strengthen its position as New Zealand's leading retailer of homeware and sporting goods," he said.

- NZPA