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

 


Smiths City full year profit falls as sales slip

Smiths City full year profit falls as sales slip

By Suze Metherell

June 27 (BusinessDesk) - Smiths City Group, the Christchurch-based department store chain, posted a 24 percent decline in annual profit on weaker appliance sales.

Profit was $4.1 million for the year ended April 30, below $5.4 million the year prior, the retailer said in a statement. Sales fell 0.8 percent to $220.7 million.

"This reflects increasing returns through the furnishings side of the retail business, the finance company and the property division offset by a disappointing result from the appliance side of the business," chairman Craig Boyce said. The retailer didn't break out its individual businesses' earnings.

Profit from operations before interest and tax rose to $5.5 million, from $3.8 million, as the company stripped out one-off gains from Canterbury earthquake related tax receipts from the year earlier.

"The comparison of operating surplus after taxation to last year is affected by the timing of the receipt of insurance payments related to the Colombo Street building," Boyce said. "With the earthquake upheaval effectively behind us the result we have achieved mean the company can look forward confidently."

Its Colombo street property, which was substantially damaged in the 2011 Christchurch earthquakes, is a key asset on Smiths City's balance sheet and its redevelopment will bring the company's retail footprint close to pre-earthquake levels, it said.

"In the three years since the Christchurch 2011 earthquakes, the company has made significant progress having earned profits from operations of approximately $15 million, reopened all its trading locations, completed refinancing of the finance company and maintained dividend payments," Boyce said.

The directors declared an unimputed final dividend of 2.5 cents, to be paid August 15, bringing the dividend for the full year to 3.5 cents, unchanged from the previous year. Shares in the NZX-listed retailer rose 8 percent to 54 cents.

The company is moving into new premises in Palmerston North and Rotorua in November and said it is considering expanding further north, to the Auckland market, with structural changes to the organisation meaning it was well positioned to, should an opportunity arise.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news