By SIMON HENDERY
The acquisition of Bendon this year has proved to be a bottom-line booster for Pacific Retail Group.
The retailer, financier and now lingerie maker yesterday reported a 14 per cent rise in half-year profit to $6.1 million for the six months to September 30.
Sales revenue rose 27 per
cent from the same period last year to $270 million and earnings before unusual items and tax were up 46 per cent to $11 million.
Chief executive Peter Halkett said Bendon and the group's finance arm, Pacific Retail Finance, had been strong contributors to the half-year result.
PRG gained full control of Bendon at the start of its April financial year after launching a takeover bid in January.
"The six-month [Bendon] result of $1.6 million compares well to the break-even result for the same period last year and includes UK operating costs for the first time," Halkett said.
An 18 per cent growth in Bendon's half-year revenue to $42 million was also encouraging, he said.
The performance of gift chain Living & Giving, acquired by PRG in late 2000, had been disappointing.
"We are still fine-tuning the basics, and remain confident about its long-term future," Halkett said.
In October PRG, 77 per cent owned by Eric Watson's Cullen Investments, raised almost $64 million through a capital notes issue, with the funds earmarked for further expansion.
Yesterday the company appointed existing board member and Cullen managing director Phil Newland as its deputy chairman.
Newland said he would devote a significant amount of his time to the new role.
"In particular, I will be focusing on the opportunities for diversification that the board has identified, including property investment and development and financial services," he said.
PRG shares closed yesterday - before the profit announcement - down 8c at the very retail-friendly price of $2.95.
The company will not pay an interim dividend.
