Briscoe reports lift in net profit

Rod Duke. Photo / Paul Estcourt

Listed retail operator Briscoe Group has reported a lift in half-year net profit, but the company's boss says uncertainty around consumer confidence means difficult trading conditions lie ahead for retailers.

The Auckland-based company - which owns Briscoes and Rebel Sport stores - said unaudited net profit for the six months to July 31 was $10.33 million, an 11 per cent increase on the prior comparable period's adjusted result.

Half-year revenue, at $194.1 million, was an improvement on the $190.1 million reported in the prior period.

Earnings before interest and tax (ebit) rose 4.8 per cent to $13.6 million, the company said.

Briscoe Group said gross margin percentage increased slightly, from 39.94 per cent to 39.97 per cent, reflecting strong buying and inventory management.

Inventory levels at July 31 dropped to $63.2 million from $68.6 million at the same time last year - the result of a reduction in store numbers and management of inventory.

Group managing director Rod Duke said the company was pleased with the half-year result.

"Most retailers would be thrilled to be able to report double digit growth for the bottom line in what continues to be a tough retailing environment," he said.

But customer confidence had remained weak during the first half of the year.

"High food prices and petrol inflation, falling or static house prices coupled with worrying economic news from Europe and America have dampened spending and encouraged people to continue to pay down debt," said Duke. "Against this background we believe our marketing strategies have driven improved market share and profitability without incurring additional spend."

He said the company had completed "space realignment" projects between Briscoes and Rebel Sport stores in Henderson and Albany.

The company said shareholders would receive an interim dividend of 3.50 cents per share. Shares closed up 4c at $1.40 last night.