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

 

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news