Australia-based, dual-listed retailer Repco produced a maiden half-year profit yesterday of A$12.4 million ($14 million) and declared it was on track to meet its full-year prospectus forecast.
Shares on the NZX rose just 1.29 per cent on the news, from $3.08 to $3.13.
Managing director Peter Mummery said the company,whose half year was to December 31, was "very happy with the result ... It is entirely in line with our prospectus".
On hearing of the subdued reaction of the market, Mummery said, "We are not after a huge lift in our shareprice, we are a solid growth stock and steady performer."
The half-year profit was a 5.8 per cent increase from the previous corresponding period's profit of A$11.7 million.
Excluding the early redemption of Repco's unsecured retail notes brought the profit up to A$15.1 million.
Sales revenue grew 4.3 per cent to A$396.7 million, while margins also grew.
The company said it was on track to meet its final dividend forecast of 7c for the year ending June 30. Its prospectus had forecast a pro-forma net profit of A$35.1 million pre goodwill for the year, with an earnings per share forecast of 21c.
Although the company does not split out its New Zealand and Australian figures, Mummery did say the smaller market was producing better profits.
New Zealand, which has 71 stores, produces 22 per cent of revenue "but more than that in profit".
He said New Zealand had an even split between the retail and trade sales revenue, and retail offered better margins.
Australia's split was around 70:30 weighted toward trade, and Mummery said Repco aimed to have sales revenue split more evenly by 2007.
The New Zealand operation is seen as an indicator of where Australia should be, he said. Of the 44 new stores planned over the next year, 14 will be in New Zealand with another 16 the following year.
Mummery said research showed Repco's A$2.7 million advertising campaign with the tagline "Cars are our life too" had unprompted recall of 83 per cent.
