Briscoe profits up but a 'tough year ahead'

Briscoe Group is warning of a tough year ahead after reporting a 14.6 per cent rise in full-year net profit to $24.1 million, when a one-off tax adjustment is excluded.
Group managing director Rod Duke said the relatively strong New Zealand dollar in the year ended January 30 had helped the homeware and sports goods retailer to a "stellar" result in a tough retail environment.
"We've been buying well enough so we've been able to hold margins through the year."
Duke said this coming year had got off to a bad start with soaring petrol prices which threatened to hit all retailers.
With fuel prices over $2 a litre, consumers were near a tipping point where discretionary retail purchases would be affected.
"It doesn't seem to have gone quite as dead when we passed the $2 threshold the other time [in 2008]. But there's got to be a point where people think, 'Hang on, mum's asking me for another $50 to put petrol in the car to get Jimmy to school and down the supermarket' - that's a lot of money," Duke said. "I don't know where that tipping point is but it can't be very far from where we are now."
Duke said the company had continued to focus on controlling costs, buying well and planning and implementing effective promotions.
"It's a stellar result in light of other listed retailers. The market's obviously very difficult out there, we're happy to confirm that but I think our people have done a sterling job."
Briscoe shares closed up 4c at $1.40. APN