Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Sun Shines On Hallenstein Glasson Performance


Sun Shines On Hallenstein Glasson Performance And Dividend Increased On Profit Growth

Trans Tasman fashion retailer Hallenstein Glasson put the fickle start to summer behind it and delivered a record unaudited after tax operating profit of $8.47 million for the six months ending February 1, 2005, up 21% on the corresponding period.

This lifted earnings per share for the period by 2.5 cents to 14.4 cents.

On the strength of the first half performance, directors have lifted the fully imputed interim dividend to 13 cents, up 30% or 3 cents.

The key to Hallenstein Glasson’s success in the six months was excellence in product ranging, stronger marketing, and getting that critical balance right between fashion, quality and price said Group Managing Director, Cliff Kinraid.

“Along with other apparel retailers we too experienced a slow start to December trading, but our stock offering was right in line with our customers’ fashion expectations.

“Against this background, the performance for the six months was excellent.”

Revenue at $90.6 million was up 6% on last year when the sale of discontinued operations (HBK Girl Stores with 15 outlets) are factored out of last year’s $90.7 million revenue figure.

The provision for taxation at $4.2 million is up 21%.

Chairman Warren Bell said New Zealand sales remained the cornerstone of the company’s operations, but that the excellent progress that continued to be made in Australia was a standout feature.

“Sales from our Glasson shops in Australia increased by 31% to $10.2 million, and our initiatives in Victoria and New South Wales are giving us good growth impetus,” said Mr Bell.

“In Australia we posted an after tax operating profit of $114,000 (against a $396,000 loss), a significant milestone in our development as a trans Tasman retailer.”

Mr Kinraid said that the company has invested heavily in developing its infrastructure in terms of senior personnel that understand the Australian consumer and in an appropriate distribution network.

“That infrastructure is capable of supporting many more stores than the current 16 we have in Australia,” he said.

“During November we opened a further store in Melbourne, and this has been trading to our expectations. Within the next year we will add an additional four or five provided we can access the right locations. An additional store will open next week in Sydney, bringing total store numbers in Australia to 17.

“Our approach to growth in Australia will continue to be measured, with a focus on achieving acceptable levels of profitability.

“Australia holds out enormous promise for us, and based on current success believe we have the formulae on the right track.”

Mr Kinraid said New Zealand sales at $80.4 million were up 4% excluding discontinued operations.

“Excellent stock control and a focus on costs enabled us to maintain our gross margins.”

Total assets at period end were $68.7 million, an increase of $11.6 million in six months.

Mr Bell said while retailing will always be a volatile environment, “our achievements in the first six months in what was a demanding retail environment give us every confidence that we have the brands, the retailing experience and the products to continue to make solid progress”.

The company’s support of the Breast Cancer Research Trust continues to receive excellent support, and it is on track to exceed the $500,000 donation made to this charity in the 2004 financial year.

The dividend will be paid on April 22, 2005, to those shareholders on the register at 5pm on April 15, 2005.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news