Pacific Retail Looks For Further Growth
Pacific Retail Group
AUCKLAND, 16 August 2000 – Pacific Retail Group (NZSE: PRG) today told shareholders that it saw potential for continued earnings growth to top off its normalised profit of $15.47 million for the twelve months to 31 March 2000, up 69% from $9.14 million on the previous year.
Speaking today at the company’s annual meeting,
Chairman Maurice Kidd said the company had completed a year
of “back to basics, return to profit” during which it had
identified future growth opportunities in new products and
product categories, natural category growth and format
growth. These would form the basis of its revenue growth for
the 2001 year. It also expected to drive cost out and make
further efficiency gains in distribution, and sales
He informed shareholders that the company saw strong additional growth prospects for the company’s finance company business and planned to implement a customer relationship management systems to better target customers and increase per customer revenue.
Executive Director and CEO, Stefan Preston noted that the increase in profit had been achieved on the back of a 7.2% growth in sales and had been accompanied by a dramatic reduction in abnormal items.
He observed that the company’s performance
had left it in a much improved position in a market sector
that provides the products that tomorrow’s consumers, in
growing numbers, will demand. He noted that the retail
sector was characterised by strong cash flows and scale
advantages such as increased leverage on rents, advertising,
buying and distribution power.
The meeting saw the reappointment of Richard Reilly and Mark Hotchin as directors. Shareholders also adopted a new constitution and authorised the company to issue up to 15 million new shares to financial institutions and private investors.
Pacific Retail Group is an NZSE-listed retail company. The appliance, electronics and computer retailer has 90 stores and sales of over $360 million, trading through its Noel Leeming, Bond & Bond, Computer City and Pacific Retail Finance brands.