Transtasman jeweller Michael Hill has posted a net profit of $10.04 million for the year ended June, compared with last year's $9.93 million.
The company said the result was below expectations but still pleasing given "extremely difficult" conditions that retailers faced in Australia in the past year.
Chairman Michael Hill said the New Zealand company had a very good year.
"Revenue improved 8.3 per cent overall, with earnings before interest and tax [ebit] up 7.3 per cent on the previous period to $7.64 million."
Same-store sales increased by 2.9 per cent.
During the year, the company opened a new, large-format store in Rotorua to replace a conventional store, and another store in Auckland. A further branch is scheduled to open in Mt Maunganui next month.
"All four [large-format] stores are operating well but there is further potential in each of them to contribute more over the coming years," said Mr Hill.
Group operating revenue rose to $189.4 million from $182.3 million for the previous year. Earnings per share rose to 26c from last year's 25.8c.
The group's cash flows were almost halved, at $7.89 million compared with last year's $14.21 million.
The Australian company improved its revenue by 1.7 per cent for the period under review (in New Zealand dollars) with ebit down 3 per cent to $10.35 million.
Same-store sales improved 3.5 per cent, including GST, for the 12 months. In Australian dollars, sales were up 11.6 per cent to $A95.5 million ($NZ117 million) and ebit down 4.3 per cent to $A8.18 million on the previous period.
"The Australian company experienced very difficult trading conditions in the first three months of the financial year associated with the introduction of GST in July 2000," said Mr Hill.
"Consumer confidence continued to be dented for most of the year, and most other retailers in Australia have experienced similar conditions with the introduction of GST."
During the year a further eight Australian stores were opened.
The final, fully imputed dividend, to be paid on October 29, is 1c higher than last year's. The total dividend payout for the year will be 15c a share, up 11 per cent on last year's 13.5c.
Since balance date, the NZ operation has sold its head office building in Whangarei for $1.5 million. The company is also selling its head office building in Brisbane.
- NZPA
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