Continuous Disclosure

Only this month, when Michael Hill International produced its full-year result, did it finally admit its Canadian operation was no longer a trial.

The company's reluctance to launch into rhetoric over its most recent international foray reflects a caution which has served its investors well.

A significant plunge in the share price early last year came after a profit drop and in an investing environment unsympathetic towards retailers.

The company, whose founder, Michael Hill, is now the chairman, has only a small per cent of liquid stock, so any trading is reflected significantly in the share price.

But, since mid-2003, the share price has crawled steadily up and is now sitting on $6.74.

This month, the company reported a 30 per cent increase in net profit to a record $15.06 million in the year to June.

During the year, the company also moved its head office from Whangarei to Brisbane. The change was significant. Michael Hill had been in Whangarei since its foundation in 1979.

The move to Australia reflected its success across the Tasman and the difficulties of running an international business from a small centre in New Zealand.

Retail is a fickle stock which is heavily influenced by the macro-environment. But lately, despite predictions of a slowdown, positive economic indicators have been trundled out en masse.

Michael Hill International, which has announced that it will double its Canadian stores to eight over the financial year ahead, is likely to remain in favour.