Hallenstein Glasson lifts dividend after profit rise

Retailer Hallenstein Glasson said today its half year net profit to 1 February rose 29 per cent to $10.9 million.

The company lifted its fully-imputed, interim dividend to 17c per share from 13c last year and 10c two years ago.

Chairman Warren Bell called the result a "stellar performance".

"This extremely strong half year result builds on the 20 per cent trading profit growth achieved in the 2005 financial year and the 41 per cent growth in 2004," he said.

"What it underlines is that our garment ranges are meeting the fashion demands of Australians and New Zealanders, and our ability to respond quickly to positive or adverse trading conditions caused by economic or seasonal fluctuations."

Trading Revenue rose 10.5 per cent to just over $100m.

The pre-tax operating surplus rose 29 per cent to $16.3m and earnings per share rose 18.4cps from 14.4cps.

Mr Bell said sales for the first six weeks of the new financial half had shown no evidence of any significant downturn in retail spending.

"However we view the current domestic economy with some caution."

Managing Director Cliff Kinraid said that over the past five consecutive six-month periods the company had demonstrated the ability to "bring the right product to market at the right time at the right price".

The 76 New Zealand stores in the Hallensteins and Glassons chains had provided the backbone to the performance.

Sales in New Zealand were up 8.1 per cent at $86.9m, and operating profit up 24 per cent to $10.3m.

Sales in Australia rose 30 per cent to $13.3m. They now made up 13 per cent of the total against 11 per cent a year ago.

"More significantly, Australian operations generated a net after-tax profit of $553,000, against last year's profit of $114,000, and our Australian business has now reported four consecutive six-month periods of profits," Mr Kincaid said.

"Our 20 Australian women's fashion stores in New South Wales and Victoria have now firmly established their credibility, and accelerated their sales contribution."

The company opened two additional stores in Sydney, and one in Melbourne in the period. In the second half the company plans to open at least a further two stores.

Last week, Hallenstein launched the first store for a new chain 'Storm'. It targets what the company sees as a gap in the mainstream women's apparel market between the volume fashion retailers and the high end designer boutiques.

"Storm will offer cool and edgy garments at a price the consumer wouldn't expect."

Further stores will be added as the concept is evolved.

Hallenstein shares were up 3c at $5.20 today. They have risen from $4.07 a year ago and $2.84 in March 2004.

- NZPA