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

 


Kirkcaldie returns to 1H profit as retail margins improve

Kirkcaldie returns to 1H profit as retail margins improve

April 28 (BusinessDesk) - Kirkcaldie & Stain’s, Wellington’s up-market department store, returned to a first-half profit as it squeezed bigger margins from an ailing retail unit and reinstated rental income from its property management unit.

The company made a net profit of $563,000, or 5.51 cents per share, in the six months ended Feb. 28, compared to a loss of $531,000, or 5.2 cents, a year earlier, it said in a statement. Revenue from continuing operations slipped 2.1 percent to $19.4 million.

“The improvement (in retail) was directly attributable to the ongoing cost reduction programme with expenses down 7.4 percent on last year and a 1 percent increase in the final margin,” chairman Falcon Clouston said. “However, the retail operations continue to face revenue challenges with sales 4.7 percent down on last year; the Wellington region is still lagging behind the rest of the country and online shopping from overseas providers continues to register double digits growth.”

Kirkcaldie plans to recapitalise the retail business once it sells its Harbour City Centre building on Wellington’s Lambton Quay, which has been valued at $50 million.

Tenders for the building closed on April 16, and the company is working through the sales process.

The board didn’t declare an interim dividend, saying there was still uncertainty about the second half of the year, and the sale of the Harbour City Centre has yet to be finalised.

The shares were unchanged at $2.10 in trading today, and have gained 11 percent this year. The company announced the result after the close of trading.

Kirkcaldie’s retail operation made a profit of $193,000 in the period on sales of $17.2 million, compared to a loss of $138,000 on sales of $18 million a year earlier. The property unit made a profit of $460,000 on revenue of $2.2 million, compared to a loss of $283,000 on revenue of $2.1 million in 2013.

The Wellington-based retailer plans to open a furniture store on Thorndon Quay in June, which it sees as generating incremental revenue and leveraging back office support. It also plans to launch a loyalty programme next month

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Court Ruling: Kiwifruit NZ Ordered To Consider Collaborative Marketing Proposals

The High Court has told kiwifruit marketer Zespri to reconsider collaborative marketing proposals from Splice Fruit and Seeka Kiwifruit to sell fruit offshore that its board had previously rejected. More>>

ALSO:

Electric Vehicles: No Road User Charges Feature In Govt Package

Drivers of electric vehicles won't have to pay road user charges and will be allowed to drive in bus lanes as part of a new government plan to double EV numbers annually to a target 64,000 by 2021. More>>

ALSO:

Pre-Budget: Computer Emergency Response Team, Assemble!

John Key told the country's first ever Cyber Security Summit in Auckland that the government had earmarked funding set up a national Computer Emergency Response Team to help prevent and act on cyber incidents in partnership with the private sector and other organisations. More>>

ALSO:

Job Cutter Goes: Mark Weldon To Step Down As MediaWorks CEO

“When I joined MediaWorks in August 2014, I had a mandate to lead a significant change programme to bring the business back from receivership into a position where it could once again be a strong competitor in the market, with a sound and sustainable future. It was a big brief, laden with inherent challenges, but I took it in good faith and have dedicated myself fully to the goal since." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news