Sharemarket darling Pumpkin Patch jumped to a record high yesterday after the company said it expected its net profit to increase 48 per cent for the year to July.
Shares in the children's clothing retailer surged 30c, or 12 per cent, to $2.80 on the news.
Pumpkin Patch has been
a consistent performer since it listed on the stock exchange on June 9 at an issue price of $1.25.
Pumpkin Patch said it expected its after tax profit for the year to July 2005 would be no less than $23 million, compared with the $15.5 million posted the previous year (before deducting the costs of its share offer).
The company said the forecast was based on favourable trading conditions in its New Zealand, Australian and British shops for the four-and-a-half months to the middle of this month.
Pumpkin Patch's sales to wholesale customers have also grown in all of its markets, especially in the Middle East and Ireland.
Meeting the new forecast depended on the buoyant conditions continuing through the rest of the financial year.
Matt Willis, of broker ABN Amro Craigs, said Pumpkin Patch was one of the best-performing new listings on the exchange this year and looked like an "exceptional" growth business.
"I think that brand is getting very, very good traction and they are starting to be a recognised brand in their space - not only in Australasia, but outside too. That potentially implies significant growth," Willis said.
Pumpkin Patch did not pay a dividend this year but next year investors can look forward to a healthy return. This year the company said it expected to pay out 50 per cent of its 2005 net profit in dividends.
Next year the company plans to open 10 new stores in Australia, three in New Zealand and three in Britain.
- NZPA
