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

 


Briscoe lifts FY profit 10%, cautiously optimistic on 2014

Briscoe posts 10% gain in annual profit, says cautiously optimistic about the year ahead

By Tina Morrison

March 6 (BusinessDesk) – Briscoe Group, which posted a 10 percent gain in annual profit, said it is “cautiously optimistic” about the year ahead as many retailers struggle to grow earnings.

Net profit rose to $33.6 million in the 52 weeks ended Jan. 26, from $30.5 million a year earlier, the Auckland-based company said in a statement. That’s in line with its most recent forecast in January that profit would exceed $33 million, although below the $34.1 million mean forecast of analysts polled by Reuters. Sales rose 6.8 percent to $483.6 million, compared with analyst expectations of $482.5 million.

Briscoe, which operates homeware and sports goods chains, said the past year was challenging for many retailers as a slow start to winter and increased rivalry prompted it to offer “more aggressive promotions” which reduced its margins.

“The group’s gross profit margin for the year decreased from 38.86 percent to 38.5 percent, reflecting the extraordinarily challenging beginning to the year as a result of the very late start to the winter category sales and also the continued competiveness of the market throughout the year,” managing director Rod Duke said.

“While many commentators are talking up the outlook for the New Zealand economy, we see a number of retailers continuing to struggle to grow profitability,” Duke said. “Our experience leads us to be cautiously optimist about the year ahead for Briscoe Group.”

The company didn’t provide a specific forecast for earnings in the coming year. Briscoe is expected to post 2015 net profit of $36.8 million on sales of $506.8 million, according to the mean forecast of analysts polled by Reuters.

Shares in Briscoe Group fell 1.2 percent to $2.53, crimping their 6.7 percent advance so far this year.

In the 2014 financial year, the company’s homeware stores boosted earnings before interest and tax by 6.7 percent to $31.2 million as it closed three Living & Giving stores, opened a new Briscoes Homeware store and refurbished other stores.

Earnings at the company’s sporting goods division rose 22 percent to $12.6 million as it refurbished five of its 32 Rebel Sport stores and rejigged the counters and apparel fixtures at seven other stores to free up additional retail space to boost sales.

The company’s online business had significant sales growth during the year across all three brands, Duke said.

Briscoe will pay a final dividend of 8 cents a share on March 31, up from 7 cents a share the year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news