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

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news