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

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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