BRISCOE GROUP LIMITED
Results for announcement to the market
Reporting Period; Full year 26 Janaury 2009 to 31 Janaury 2010
Previous Reporting period; Full Year 28 January 2008 to 25 January 2009
Amount (000s); Percentage change
Sales reveune from ordinary activities
$416,686 +7.3%
Profit from ordinary activities after tax attributable to shareholders
$21,026 +80.7%
Net Profit attributable to shareholders.
$21,026 +80.7%
EPS:
Basic EPS 9.9cps 5.5cps
Diluted EPS 9.7cps 5.4cps
Final Dividend:
Gross amount per share 5.00 cents
Imputed amount per share 5.00 cents
Record Date: 24/03/2010
Payment Date: 31/03/2010
Imputation tax credit: $0.024627
The directors of Briscoe Group Limited announce an audited net profit after
tax (NPAT) of $21.03 million for the year ending 31 January 2010,
representing an increase of 80.7% over the $11.63 million achieved for the
previous year.
The directors have resolved to pay a final dividend of 5.00 cents per share
(cps). This compares to last year''s final dividend of 3.50 cps. The dividend
is fully imputed and, when added to the interim payment of 2.00 cent per
share, brings the total dividend for the year to 7.00 cps (previous year 4.50
cps) and represents 71% of the Group''s NPAT.
The final dividend will be paid on 31 March 2010, earlier than in previous
years, to take advantage of the ability to impute the final dividend at 33%
rather than the reduced 30% rate that will apply for any dividends paid after
31 March 2010. The share register will close to determine entitlements to the
dividend at 5 pm on 24 March 2010.
The result incorporates an additional week''s trading in comparison to the 52
week period last year but is net of asset impairment adjustments totalling
$1.86 million in relation to the Living & Giving specialty homeware stores.
The earnings were generated on sales revenue of $416.69 million, an increase
of 7.3% on the $388.47 million reported in the previous year.
The Group''s gross profit increased 10.9% from $150.09 million to $166.46
million for the year, equating to a gross profit margin of 39.9%, compared to
38.6% for the 2008-09 year.
Earnings before interest and taxation (EBIT) increased 99.3% from $15.11
million for 2008-09 to $30.12 million for the 2009-10 year.
Group Managing Director, Rod Duke, said "We are proud of the recovery we
achieved in a market environment of continued global economic uncertainty and
only a partial recovery in overall retail spending in New Zealand.
"Briscoe Group is continuing to derive benefits from the key strategic and
structural initiatives recently put in place. In particular, the result has
benefited materially from the positive ways our store management and support
team have accepted and responded to the revitalised operational structure
introduced at the beginning of the 2009-10 year and to the cost and inventory
management improvements made during the second half of the previous year."
Total floor area of the Group''s homeware operations increased slightly during
the year to 94,852 square metres across 58 stores reflecting the opening of a
Living & Giving store in Riccarton in June. The number of sporting goods
stores remained unchanged at 32 with a total floor area of 53,714 square
metres.
On a same-store basis (and adjusted for the 53 week year), sales increased by
4.74% for the Group. The homeware and sporting goods segments returned same
store sales increases of 4.16% and 6.02% respectively.
During the year $6.69 million of capital investment was made by the Group.
Most of this was for the purchase of property in Palmerston North, into which
we expect to relocate the existing Briscoes Homeware and Rebel Sport stores
by the end of 2010.
Inventories totaled $63.35 million at year-end, being a $5.89 million
increase on last year. This reflected the realignment of inventory levels for
the increased consumer demand experienced during the second half of 2009-10
as stronger sales trends for the Group emerged.
Trade and other payables at year end were $33.23 million, the $17.20 million
reduction from last year being a function of the later financial year-end
date for the current year.
Cash and bank balances as at 31 January 2010 were $59.25 million, $4.04
million less than the $63.29 million as at 25 January 2009, after the
significantly higher outlays for capital investment and trade and other
payables in the year just ended.
Net cash inflows from operating activities were $14.91 million, $13.19
million below those of last year, primarily as a result of increased payments
made in relation to GST and to suppliers, arising from the later financial
year-end date.
Net cash outflows from investing activities were $6.68 million reflecting
investment made during the year, primarily in relation to the property
purchased in Palmerston North.
The results are for the 53 week period from 26 January 2009 to 31 January
2010.
Group Managing Director, Rod Duke, said "The Group''s store opening /
refurbishment programme for 2010-11 will see a step up from last year''s
rather subdued level as the storm of economic downturn was weathered. By the
end of this year the existing Briscoes Homeware and Rebel Sport stores at
Palmerston North will be relocated to our newly purchased site and full
refurbishments are planned for Rebel Sport stores at Botany and Wellington
City as well as for Briscoes Homeware stores at Botany and Salisbury Street,
Christchurch. We will also continue to look for opportunities in the main
centres to establish large format Briscoes Homeware stores, to build on the
successes we are achieving at Panmure.
"These excellent results do, however, incorporate a less than satisfactory
performance by the specialty homeware Living & Giving stores, which operate
in a highly discretionary sector that has been severely impacted by the
economic downturn. As part of the first half year result an impairment
adjustment of $0.83 million was made for under-performing assets associated
with these stores, and included in this full year result is a further
adjustment of $1.03 million.
"This past year has been one of major change for most of the store managers
and support functions as a consequence of the new ''profit centre'' structure
we introduced. We believe that this has been a key driver to the speed of the
Group''s recovery. The opportunity for management to create and share
incremental profit has transformed the way managers view their specific areas
of responsibility. For the ''Senior Profit Partners'' responsible for store
profit centres, this change has driven a real sense of ownership of sales,
margin and costs within their particular areas of control.
"Although the economic indicators are still difficult to read we are
cautiously optimistic that we will continue to build on the improvements in
operating and financial performance we made through 2009-10. We expect that
Briscoe Group will further strengthen its position as New Zealand''s leading
retailer of homeware and sporting goods.
"On behalf of the Board I would like to acknowledge again, the huge
contribution from all the team and thank them for their continued support and
effort over the past 12 months."
Tuesday 9th March 2010
Contact for enquiries:
Rod Duke
Group Managing Director
Tel: 021964189
End CA:00192257 For:BGR Type:FLLYR Time:2010-03-09:09:28:30