ANNOUNCEMENTS PRIOR TO 2002



Click Here to download the Notice of Event Affecting Securities 23/08/01 (46KB PDF File)

Click Here to download the 30/06/01 Preliminary Full Year Report Announcement (251KB PDF File)

Click Here to download the 30/06/01 Preliminary Full Year Report Power Point Presentation

Friday, 24th August 2001 - Chairman’s Statement

  1. Profit Announcement

    Michael Hill International has today announced a record tax paid profit of $10.039 million for the 12 months ended 30 June 2001 (2000 - $9.939 million).

    This 1% increase in profit was achieved on turnover of $189.168 million (2000-$181.983 million).

    Taking into account the extremely difficult conditions faced by all retailers in Australia over the past twelve months, the Board was pleased with the result, despite being considerably below our budgeted profit for the year.

    The results for the year represents an excellent 22.6% return on average shareholders funds (2000 - 24.9%)., after providing for the final dividend.

    New Zealand Operations
    The New Zealand Company had a very good year. Revenue improved 8.3% overall with earnings before interest and tax (EBIT) up 7.3% on the previous period to $7,643,000. EBIT as a percentage of revenue remained steady at 11.2% of revenue.

    Same store sales increased overall by 2.9%.

    During the course of the year, the New Zealand Company opened a new large format store at Rotorua, replacing a conventional store. This store is operating well.

    In addition, a new store was opened at the new Botany Town Centre in Auckland in May 2001.

    Total stores operating in New Zealand at 30 June 2001 were 41, with a further store to be opened at the Bayfair Shopping Centre in Mt Maunganui in September 2001.

    The New Zealand Company has four large format stores operating. All four stores are operating well, but there is further potential in each of them to contribute more over the coming years.

    Australian Operations
    The Australian company improved its revenue by 1.7% for the period under review (in N.Z. dollars) with EBIT down 3% to $10,354,000.

    Same store sales (adjusted for the effect of GST) improved 3.5% for the 12 months.

    In Australian dollars, sales were up 11.6% to AUD$95.5 million (GST adjusted) and EBIT down 4.3% to AUD$8,179,000 on the previous period. The exchange rate used for the translation of the Australian surplus was .79¢ (2000, .80¢).

    As previously explained with the half year results, the Australian company experienced very difficult trading conditions in the first three months of the financial year associated with the introduction of GST on 1 July 2000. Consumer confidence continued to be dented for most of the year in fact and most other retailers in Australia have experienced similar conditions with the introduction of GST. The Sydney Olympics also had a significant negative effect on sales, with most Australians glued to their television sets during the two weeks.

    During the period under review, a further eight stores were opened.

    These were Dandenong in Melbourne, Forest Hill (Melbourne), Burwood (Sydney), Chatswood (Sydney), Galleria (Perth), Hornsby (Sydney), Albury (NSW), and Crown Central (NSW).

    Dandenong and Albury are the first large format stores to be trialled in Australia and the two stores are being closely monitored.

    At 30 June 2001, there were 74 stores operating in Australia.

  2. Final Dividend

    The Directors are pleased to announce a final dividend of 8.5 cents per share (2000 - 7.5 cents per share), with full imputation credits attached. The dividend has not been accrued into the 2000/01 accounts in accordance with FRS 5, which is a change in accounting policy compared to the previous year.

    The total dividend payout for the year will be 15 cents per share (2000 - 13.5 cents) representing an 11% increase on last year. The payout for the year is equivalent to 57.6% of the tax paid profit of the group.

    Overseas shareholders will receive a supplementary dividend.

    The dividend will be paid on 29 October 2001.

  3. Cash Flows / Balance Sheets

    The Group has reported net operating cash flows for the period of $7,887,000 (2000-$14,214,000).

    The Group's equity ratio stands at a very healthy 51.9% (2000 - 52%) with its working capital ratio at 3.9:1 (2000 - 3.5:1). Both these ratios have been calculated after providing for the final dividend.

  4. Summary and The Future

    The future of the group remains exciting and our philosophy of controlled profitable growth will continue to guide our growth over the coming years.

    In New Zealand, some exciting new marketing initiatives will be introduced in the coming months, which should assist revenue. Further new stores are also being investigated, in addition to the new store at Bayfair opening in September.

    In Australia, up to a further 4-6 stores will be opened depending on the availability of suitable sites.

    The cut in corporate tax rates from 34 cents to 30 cents in Australia from the 1st July 2001 will also be of great benefit to the company in the next financial year.

    Since balance date , the NZ company has sold its Head Office building in Whangarei for $1.5 million with settlement on 3rd September 2001.

    The group is also placing its Head Office building in Brisbane on the market in the next two weeks. Both buildings will be leased back on long term leases. The Brisbane building is being sold in two stages with stage one being placed on the market now and stage two to be sold in approximately 3 years time. Stage one of the Brisbane building is expected to realise around AUD$4.6million in the next 2-3 months with a further AUD$2 million realised on the sale of stage 2 of the Brisbane building in 3 years time. The Board is considering various options on what to do with these funds when stage one of the Brisbane building is sold.

    As in all previous years, we will continue to place heavy emphasis on improving existing stores. Beyond the current financial year there are still opportunities for upwards of 40 new stores in Australia.

    This continued growth, combined with maintaining improvement in our existing stores augurs well for the future profitability of the group and will ensure that our company remains at the forefront of jewellery retailing and manufacturing in Australasia.

    The Directors remain confident in the continued growth and profitability of the group.

    On behalf of the Directors


    M. Hill 23/08/01
    Chairman

    Internet Home Page - www.michaelhill.co.nz
    Email -


    Click Here to download the 31/12/00 Preliminary Half Year Report Announcement (50KB PDF File)

    Click Here to download the 31/12/00 Preliminary Half Year Report Power Point Presentation

    Friday, 23rd February 2001 - Chairman’s Statement

    1. Profit Announcement

      Michael Hill International has today announced a record tax paid half year profit of $7,745,000 for the six months ended 31 December 2000 (1999 - $7,494,000).

      This 3.4% increase in profit was achieved on turnover of $104,727,000 (1999 - $100,530,000).

      The result is due mainly to the difficult trading conditions experienced in Australia in the first six months, as further explained below.

      New Zealand Operations

      The New Zealand Company improved its revenue by 11.2% for the six months with earnings before interest and tax (EBIT) up 12.1% on the previous period to $5,342,000.

      EBIT as a percentage of revenue rose from 14.2% to 14.3%.

      Same store sales for the six months increased by 1.9%.

      One further large format store was opened during the period at Rotorua and is trading very well. The New Zealand Company had 40 stores operating at 31 December, including the 4 large format stores at Albany, Mt Wellington, Westgate and Rotorua.

      A further conventional store will be opened at Botany Downs in May 2001, and further opportunities for the remainder of this calendar year are being investigated.

      Australian Operations

      The Australian company improved its revenue by 0.6% for the period under review (in NZ Dollars) with EBIT down 1.7% to $7,920,000.

      Same store sales (adjusted for the effect of GST) improved 1.0% for the six months. In Australian Dollars, sales were up (in GST adjusted terms) 6.5% to A$57,029,000 and EBIT down 5.4% to A$6,098,000 on the previous period. The exchange rate used for the translation of the Australian Profit was .77 (1999 - .80).

      Along with most other Australian retailers, the Australian Company experienced difficult trading conditions in the first three months of the financial year associated with the introduction of GST on 1 July 2000.

      Consumer confidence was dented for some time after its introduction and this, combined with some one off costs associated with introducing GST, had a negative impact on sales and consequently the EBIT line. The Sydney Olympics also had a significant negative effect on sales, with most Australians glued to their television sets during the two weeks.

      These factors combined to produce a result that was disappointing for the first six months.

      During the period under review, a further five stores were opened at Dandenong in Melbourne, Forest Hill (Melbourne), Burwood (Sydney) ,Chatswood (Sydney) and Galleria (Perth). A total of 71 stores were operating throughout Australia as at 31 December 2000.

      A further three stores are due to open before 30 June at Hornsby (Sydney), Albury (NSW) and Crown Central (NSW).

      Dandenong is the first large format store to be trialled in Australia and opened in late November. The trading results are being closely monitored.

    2. Interim Dividend

      The Directors have declared an 8% increase in the interim dividend to 6.5 cents per share (1999 – 6.0 cents), with full imputation credits attached. The dividend will be paid on Monday 26th March 2001.

    3. Cash Flows / Balance Sheets

      The Group has reported net operating cash flows of $6,645,000 for the six months (1999 - $18,756,000).

      The Groups balance sheet continues to be strong with an equity ratio of 46% (1999 – 46.7%) and a working capital ratio of 2.6:1 (1999 – 2.7:1)

    4. The Future

      Our philosophy of controlled profitable growth continues.

      As stated above, a further four stores are due to be opened in Australia and New Zealand prior to 30th June 2001.

      The performance of our large format stores is being closely monitored and further opportunities are being carefully investigated. There still remains opportunities to open 40 plus conventional stores in Australia over the next four to five years.

      This growth and the strength of the Group’s retail management and training systems will continue to ensure the Company remains at the forefront of jewellery retailing and manufacturing over the coming years.

      The Directors remain confident in the continued growth and profitability of the Group.

      On behalf of the Directors


      M. Hill 22/02/01
      Chairman

      Internet Home Page - www.michaelhill.co.nz
      Email -

      Click Here to download the 30/06/00 Preliminary Full Year Report Announcement (50KB PDF File)

      Friday, 18th August 2000 - CHAIRMAN'S STATEMENT

      1. Profit Announcement

        Michael Hill International has today announced a record tax paid profit of $9.939 million for the 12 months ended 30 June 2000 (1999 - $8.774 million).

        This 13.3% increase in profit was achieved on turnover of $181.98 million (1999 - $156.94 million).

        The Board is very pleased with this result which followed a 22% increase in profit the previous year.

        The results for the year represent an excellent 24.9% return on average Shareholders funds.

        New Zealand Operations

        The New Zealand company had a difficult year. Revenue improved 11.5% overall with earnings before interest and tax (EBIT) up 1.7% on the previous period to $7,120,000. However EBIT as a percentage of revenue declined from 12.4% to 11.3%.

        Overall sales did not meet expectations in November caused by a nervousness in the market leading up to the General election, and January sales were also disappointing.

        The New Zealand company also had additional one off costs this year in terms of having two General Managers in place for much of the year. With Howard Bretherton retiring at 30 June 2000, Kevin Phillips was brought in as General Manager early in the year and worked alongside Howard for most of the year.

        Same store sales increased overall by 1.5%.

        During the course of the year, the New Zealand company opened 3 new Super Stores. Albany was opened in July, Mt Wellington in December and in April a conventional store at the Westgate Centre in Auckland was converted into a Super Store.

        The results from these Super Stores have been very encouraging to date, and major contributions are expected from these three stores in the year ended 30 June 2001, when all three stores will be contributing for a full year.

        A further Super Store will open at Rotorua on the 18th August, replacing a conventional store that has been operating successfully in Rotorua for the past 7 years.

        A total of 40 stores including 3 Super Stores were operating as at 30 June 2000.

        In the coming year a further two stores are being investigated.

        Australian Operations

        The Australian company improved its revenue by 18.5% for the period under review (in NZ Dollars) with EBIT up 23.3% to $2,015,000 on the previous period to $10,678,000. EBIT as a percentage of revenue improved from 8.6% to 9.0%

        The exchange rate for translating the Australian results was .80 (1999 - .84).

        Same store sales rose by 5.4% over the 12 month period.

        Four new stores were opened during the year with two stores being closed. The four stores opened were at Macarthur Square - Sydney, Dubbo - New South Wales, Warriewood - Sydney, and The Glen - Melbourne.

        At 30 June 2000, a total of 66 stores were trading in Australia.

        This result was very pleasing considering the majority of the increase came from our existing store base and reflects the Groups commitment to increasing returns from current assets.

        Construction of Australia's new Central office, warehouse and manufacturing premises nears completion in Brisbane. This new 2200m2 facility was negotiated and constructed over the course of this year with completion of the internal fitout due in late August.

        In the coming financial year up to six more stores will be opened in Australia depending on site availability. This will include the first Super Store in Australia at Dandenong in Melbourne.

      2. Final Dividend

        The Directors are pleased to announce a final dividend of 7.5 cents per share (1999 – 6 cents per share), with full imputation credits attached.

        The total dividend for the year will be 13.5 cents per year (1999 – 11.5 cents), representing a 17% increase on last year.

        Overseas shareholders will receive a supplementary dividend.

        The dividend will be paid on the 24th October 2000.

      3. Cash Flows / Balance Sheets

        The Group has reported net operating cash flows for the period of $14,214,000 (1999 - $2.781 million.) and has funded all growth this year out of operating cash flows with no increase in long term debt.

        The Groups equity ratio stands at a very healthy 52%(1999 – 50%).

      4. Summary and the Future

        We have again met our budgeted profit for the year. Our philosophy of controlled profitable growth continues to produce the results we planned and the future of the Group looks very exciting.

        The opening of the first Super Store in Australia will be a big step forward for the Company and its progress will be monitored closely. This coming year will also see the first store opened in Perth before Christmas. This is a large target market for the Group with potential for opening up to 10 stores in West Australia.

        The cut in corporate tax rates in Australia from 36 cents to 34 cents from 1/7/00 and 30 cents from 1/7/01 will also be of great benefit to the Company in the coming years.

        As in previous years, we will continue to place heavy emphasis on improving existing stores. Beyond the current financial year, there are still opportunities for upwards of 40 new stores in Australia. This continued growth, combined with maintaining improvement in our existing stores augurs well for the future profitability of the Group and will ensure that the Company remains the most profitable publicly listed jewellery retailer in Australasia.

        The Directors remain confident in the continued growth and profitability of the Group.

        On behalf of the Board

        M. Hill 17/08/00
        Chairman


      Click Here to download the Half Year Results to 31 Dec 99 (217KB PowerPoint File)

      Friday, 25th February 2000 - CHAIRMAN'S STATEMENT

      1. Profit Announcement

        Michael Hill International has today announced a record tax paid profit of $7,494,000 for the six months ended 31 December 1999 (1998 - $6,523,000).

        This 15% increase in profit was achieved on turnover of $100,530,000 (1998 - $85,965,000).

        The profit exceeded the Groups budget of $7,400,000 for the six months and the Board is very pleased with the result.

        New Zealand Operations

        The New Zealand Company improved its revenue by 11.4% for the six months with earnings before interest and tax (EBIT) up 7.4% on the previous period to $4,766,000.

        Same store sales rose 4.6% during the period.

        Although December was a good trading month with same store sales up 12.4%, November proved to be a very difficult month coinciding with the General Election.

        Two new Superstores were opened in Auckland during the period, one at the Albany Supa Centre in July and the other at the Harvey Norman Centre at Mt Wellington on the 10th of December.

        Both stores are trading to our expectations and are providing a totally new jewellery shopping experience for our customers. A further Superstore is to be opened at Westgate in Auckland in April.

        The New Zealand Company had 40 stores operating at 31 December, including 2 Superstores.

        Australian Operations

        The Australian company improved its revenue by 20% for the period under review (in NZ Dollars) with EBIT up 20.2% on the previous period to $8,059,000.

        Same store sales improved 6.3% for the six months. In Australian Dollars sales improved 14.2% to A$53,517, 518 and EBIT improved 14.6% to A$6,447,363. As a percentage of sales our EBIT was in line with last year at 12.0%. The exchange rate used for the translation of the Australian Profit was .80 (1998 - .84)..

        A total of four new stores were opened during the period under review (1998 – 4 new stores). These new stores were opened at

        Macarthur Square, Sydney
        Dubbo, New South Wales
        Warriewood, Sydney
        The Glen, Melbourne

        One store in Brisbane, Capalaba Central was closed during this period. A total of 67 stores were operating in Australia as at 31 December 1999.

        New sites are currently under investigation in NSW and Victoria, to open later in the second half of the year.

        The Company’s new central administration/warehouse and manufacturing facility in Brisbane is currently on schedule and on budget – completion is due in September 2000.

      2. Interim Dividend

        The Directors have declared a 9% increase in the interim dividend to 6.0 cents per share (1998 – 5.5 cents), with full imputation credits attached. The dividend will be paid on Monday 20th March.

      3. Cash Flows / Balance Sheets

        The Group has reported net operating cash flows of $18,756,000 up 193% on last years $6,383,000. A planned reduction in stock levels in both countries has been a major contributor to this large improvement.

        The Groups balance sheet continues to be strong with an equity ratio of 46.7% (1998 – 46.2%) and a working capital ratio of 2.7:1 (1998 – 3.2:1)

      4. New Director

        I am pleased to announce the appointment of Mr Murray Doyle as a Director of Michael Hill International.

        Murray, who is 40 years old, resides in Wellington and is a Director and substantial shareholder in listed property and investor company Southern Capital Limited and Wellington Department Store Kirkaldie and Stains Limited. Murray has had 20 years experience in the finance industry being a founding partner of the stockbroking firm Doyle Paterson Brown Ltd. Following Bankers Trust New Zealand Ltd’s purchase of that business, he became the chairman of BT Alex Brown New Zealand and a Director of Bankers Trust New Zealand Limited.

        We welcome Murray as both a Director and a shareholder to the company.

      5. The Future

        Our philosophy of controlled profitable growth continues to govern our future.

        A further 3 new stores are planned to be opened in Australia before 30 June 2000, and as previously mentioned a further Superstore is to be opened in Auckland in April.

        There are a number of opportunities for further Superstores to be opened in New Zealand and Australia. These will be carefully investigated along with close monitoring of the performance of the existing Superstores over the next 12 months.

        In addition, there are opportunities to open 40 plus conventional stores in Australia over the next 4-5 years.

        This growth and the strength of the Group’s retail management and training systems will continue to ensure the company remains at the forefront of jewellery retailing and manufacturing in Australasia over the coming years.

        The Directors remain confident in the continued growth and profitability of the Group.

        On behalf of the Directors

        M. Hill
        25/02/00
        Chairman

        Internet Home Page www.michaelhill.co.nz
        E-mail


      Click Here for Preliminary Full Year Report Announcement

      Friday, 20th August 1999 - CHAIRMAN'S STATEMENT

      1. Profit Announcement

        Michael Hill International has today announced a record tax paid profit of $8.774 million for the twelve months ended 30 June 1999 (1998 - $7.192 million)

        This 22% increase in profit was achieved on a turnover of $156.94 million (1998 - $141.254 million)

        The Board is very pleased with this result which followed a 40% increase in profit the previous year.

        The result for the year represents an excellent 25.3% return on average shareholders' funds. For the past 3 years, the group has averaged a 23% return on shareholders funds.

        New Zealand Operations

        The New Zealand Company had an excellent year. Revenue improved 11.3% with earnings before interest and tax (EBIT) up 14.5% on the previous period to $7,003,000. EBIT as a percentage of revenue improved from 12.0% to 12.4%.

        Same store sales increased by a very encouraging 8.1%.

        During the course of the year, three new stores were opened at Gisborne, Westgate (Auckland), and at Hornby (Christchurch).

        A total of 38 stores were operating as at 30 June 1999.

        An exciting new Michael Hill super store has just recently been opened (20th July) in the Albany Mega Centre in Auckland. This 5,000 square foot store is one of the largest jewellery stores in Australasia and has on display a huge selection of over two million dollars worth of jewellery and watches. The opening of the superstore concept at Albany is a part of a plan to grow the size of the New Zealand jewellery market. In New Zealand, the average spend per head of population is estimated at NZ$40, whereas in Australia the spend per head amounts to AUD$88 and in the U.K £45. This suggest that there is still a lot of room for growth in the New Zealand market.

        A further Super Store is to be opened in the Harvey Norman Centre at Mt. Wellington, Auckland in December this year.

        Australian Operations

        The Australian Company improved its revenue by 11% for the period under review with EBIT up 21% on the previous period to $8.662 million. EBIT as a percentage of revenue improved from 7.9% to 8.6%.

        The exchange rate used for translating the Australian results was .84 (1998 - .83)

        Same store sales rose by 1.8% over the 12-month period.

        Six new stores were opened during the period. These were at Cavill Avenue (Gold Coast), Airport West (Melbourne), Carindale (Brisbane), Wagga Wagga (NSW), Corio Village, Geelong (Victoria) and Fountain Gate (Melbourne)

        At 30 June 1999, a total of 64 stores were operating in Australia.

      2. Final Dividend

        The Directors are pleased to announce a final dividend of 6.0 cents per share (1998 – 5.0 cents per share), with full imputation credits attached.

        The total dividend for the year will be 11.5 cents per share (1998 - 9.5 cents), representing a 20% increase on last year.

        Overseas shareholders will receive a supplementary dividend.

        The dividend will be paid on the 26th October 1999.

      3. Cash Flows/Balance Sheet

        The group has reported net operating cash flows for the period of $2.781 million, (1998 - $8.502 million).

        The groups operating cash flow this year has been affected by a number of factors. A deliberate decision to expand the product ranges, in both countries, particularly in the diamond ring area has impacted on the groups inventory levels. The opening of the largest destination jewellery store in Australasia at Albany in July 1999 also impacted on operating cash flow for the group, as the stock holding for this store was included in the group's inventory at 30/6/99.

        The group's equity ratio stands at a very healthy 50% (1998 – 51%)

      4. Resignation of Howard Bretherton

        Howard Bretherton has announced that he will be resigning as joint Managing Director of the Group, effective from mid August 2000, to pursue his own private interests.

        Howard has made an enormous contribution over the past 20 years and we will be sad to see him go.

        The Board has taken this opportunity to review the management structure of the group and is pleased to announce that Mike Parsell will be appointed group CEO in August 2000. A General Manager for the New Zealand Company will be appointed shortly and will work closely with Howard Bretherton over the next 12 months. No problems are expected in the continuing operations of the New Zealand Company, which has a very experienced Management team in place.

      5. Summary and the Future

        We have exceeded our expectations yet again in this last financial year. Our philosophy of controlled profitable growth continues to produce the results we planned and the future of the group looks as exciting as ever.

        The two new super stores that will be operating in Auckland this year provide the opportunity to offer a completely new jewellery shopping experience for New Zealanders, and to grow the New Zealand market.

        The new Albany store is performing extremely well after 3 weeks of trading, and we are confident that the new concept will work very well at the Mt. Wellington site.

        As in previous years, we will continue to place heavy emphasis on improving existing stores, but we also have plans to open between six and ten conventional stores in Australia, depending on site availability.

        Beyond the current financial year, there are still opportunities to open an additional 40 plus stores in Australia. This growth, combined with the continuing improvement in our existing stores will ensure that the company remains at the forefront of the jewellery industry in Australasia.

        The Directors remain confident in the continued growth and profitability of the group.

        On behalf of the Board

        M. Hill         20/8/99
        Chairman

        Internet Home Page www.michaelhill.co.nz
        E-mail


      Wednesday, 17th February 1999 - CHAIRMAN'S STATEMENT

      1. Profit Announcement

        Michael Hill International has today announced a record tax paid profit of $6,523,000 million for the six months to 31 December 1998 (1997 - $5,260,000 million).

        This 24% increase in profit was achieved on a turnover of $85,965,000 (1997 - $73,549,000).

        In view of the overall economic conditions prevailing during the period, the Board is very pleased with this result.

        New Zealand Operations

        The New Zealand Company improved its revenue by 11.1% for the six months with earnings before interest and tax (EBIT) up 13.2% on the previous period to $4,438,000 million.

        Same store sales rose 8.1% during the six months.

        Two new stores were opened during the period, one at Gisborne and one at the new Westgate Centre in West Auckland. Both stores are exceeding our initial expectations for these locations.

        The New Zealand Company had 38 stores operating at 31 December.

        Australian Operations

        The Australian company improved its revenue by 20% for the period under review in NZ dollars with EBIT up 23.3% on the previous period to $6,706,000 million.

        A total of four new stores were opened during the period under review (1997 – 3 new stores), to give a total of 62 stores operating in Australia at 31 December 1998.

        Same stores sales rose 2.3% in Australia for the six months.

        Up to three new stores are planned to be opened prior to 30 June 1999.

      2. Interim Dividend

        The Directors have declared a 22% increase in the interim dividend to 5.5 cents per share (1997 – 4.5 cents), with full imputation credits attached.

        The dividend will be paid on the 22nd March 1999. Overseas shareholders will also be paid a supplementary dividend.

      3. Cash Flows/Balance Sheet

        The group has reported net operating cash flows for the period of $6,390,000 million, (1997 - $8,889,000).

        The group's balance sheet continues to strengthen with an equity ratio of 46.2% (1997 – 44.7%) and a working capital ratio of 3.18:1 (1997 – 2.9:1).

      4. Forecast for the year ended 30 June 1999

        The uncertainty of trading conditions over the next 5 months makes forecasting our year end position difficult. At this stage, our full year forecast tax paid profit position is around $8.4 million (1998 actual - $7.192 million).

      5. New Director

        I am pleased to announce the appointment of Mr Wayne Peters, as a Director of Michael Hill International.

        Wayne, who is 39 and based in Australia, has 22 years experience in retail and investment funds management. After 3 years in book retailing, Wayne established a chain of 12 photographic stores in Brisbane and Melbourne introducing the Kodak Express banner to Australia.

        He is currently CEO and founder of Peters MacGregor Investments, which runs the Peters MacGregor Value funds in Australia and New Zealand.

        Wayne is a member of the Australian Institute of Company Directors and the Securities Institute of Australia. He holds a Diploma in Business and a Master of Business Administration.

        Wayne has been working with the Board over the last six months as a consultant, and we welcome him to the Board as the fourth independent Director.

      6. The Future

        A major milestone in the history of Michael Hill Jeweller occurred during this past six months – the opening of the 100th store in the Michael Hill Jeweller chain. (Michael Hill opened the first store in Whangarei in 1979, 20 short years ago).

        The remainder of this financial year will see a continuation of our philosophy of controlled profitable growth.

        Up to another three stores are planned to be opened in Australia by 30th June and an additional two new stores are being investigated in New Zealand. As previously announced, there are still opportunities to open an additional 40 plus stores in Australia over the next 4 years.

        This growth and the company's comprehensive retail management and training systems will ensure that the company remains at the very forefront of jewellery retailing in Australasia over the coming years.

        The Directors remain confident in the continued growth and profitability of the group.

        On behalf of the Directors

        R. M. Hill
        Chairman                   17/2/99

        Internet Home Page www.michaelhill.co.nz
        E-mail


      Tuesday, 18th August 1998 - CHAIRMAN'S STATEMENT

      1. Profit Announcement

        Michael Hill International has today announced a record tax paid profit of $7.192 million for the twelve months ended 30 June 1998 (1997 - $5.154 million)

        This 39.5% increase in profit was achieved on a turnover of $141.254 million (1997 - $118.303 million)

        The Board is very pleased with this result which was again achieved under extremely competitive and difficult retail trading conditions in both Australia and New Zealand.

        The result for the year represents a 24% return on average shareholders' funds, a figure matched by few companies on the New Zealand Stock Exchange.

        Australian Operations

        The Australian Company improved its revenue by 28.4% for the period under review with earnings before interest and tax (EBIT) up 35.1% on the previous period to $7.158 million.

        The exchange rate used for translating the Australian results was .83 (1997 - .91). Same store sales rose 8% in Australia over the 12-month period.

        Seven new stores were opened during the period.

        • Shell Harbour Wollongong

        • Bankstown Sydney

        • Casuarina Darwin

        • Tweed City Tweed Heads

        • Chirnside Park Melbourne

        • Stones Corner Brisbane


        At 30 June 1998, a total of 58 stores were operating in Australia.

        New Zealand Operations

        The New Zealand Company improved its revenue by 6.2% to $50.845 million with no new stores opened during the period. Same store sales improved by 5%.

        EBIT improved 10.7% to $6.117 million for the period.

        A total of 36 stores were operating as at 30 June 1998.

      2. Final Dividend

        The Directors are pleased to announce a final dividend of 5.0 cents per share (1997, 3.5cents per share), with full imputation credits attached. The total dividend for the year will be 9.5 cents per share (7.0 cents in 1997), representing a 36% increase on last year. Overseas shareholders will receive a supplementary dividend.

        The dividend will be paid on 5 October 1998.

      3. Cash Flows/Balance Sheet

        The group has reported net operating cash flows for the period of $8.502 million (1997 - $3.045 million). This 179% increase has enabled the group to retire a further $1.75 million of long term debt during the period.

        The groups' equity ratio stands at a very healthy 51% (1997 – 49%).

      4. Summary and the Future

        This last financial year has been one of the best years in the history of the group. Our overall strategy of controlled profitable growth is producing the results we planned and the future of the group looks very exciting.

        We have achieved a 39% increase in profit while opening a net six new stores during the last financial year, which illustrates the emphasis we have been placing on improving the performance of existing stores.

        We will continue to place emphasis on improving existing stores in the coming year, but we also have plans to open a further 7-10 new stores in Australia, depending on site availability and at least two new stores in New Zealand. These new stores will see the group pass the major milestone of 100 Michael Hill Jeweller stores throughout Australasia.

        Beyond the current financial year, there are opportunities to open an additional 40 stores in Australia. This growth, combined with the company's comprehensive retail management and training systems, will ensure the company remains at the forefront of jewellery retailing in Australasia.

        The Directors remain confident in the continued growth and profitability of the group.

        On behalf of the Board

        R. M. Hill
        Chairman               18/8/98

        Internet Home Page michaelhill.co.nz
        E-mail


      Wednesday, 25th February 1998 - CHAIRMAN'S STATEMENT

      Profit Announcement
      Michael Hill International has today announced a record tax paid profit of $5.260 million for the six months to 31 December 1997 (1996 - $4.366 million)

      This 20.5% increase in profit was achieved on a turnover of $73.549 million (1996 - $65.763 million)

      This very positive result was achieved in extremly competitive retail trading conditions.

      New Zealand Operations
      The New Zealand Company improved it's revenue by 6.5% for the six months with earnings bfore interest and tax (EBIT) up 9.6% on the previous period to $3.921 million.

      Same store sales rose 5% during the six months with a 6% increase for the month of December.

      The New Zealand company has 36 stores, with no new openings planned for the remainder of this financial year.

      Australian Operations
      The Australian company improved it's revenue by 15.2% for the period under review with EBIT up 21.8% on the previous period to $5.438 million.

      A total of 3 new stores were opened during the period under review (1996 - 3 new stores), to give a total of 55 stores operating in Australia at 31 December 1997.

      Same store sales rose 6.6% in Australia for the six months with a 7.5% increase in the all important month of December.

      A further 3 stores are planned to be opened prior to June 1997.

      One of these stores will be in Darwin in the Northern Territory, with the other two in New South Wales and Queensland, depending on site availability.

      Interim Dividend
      The Directors have declared a 28% increase in the interim dividend to 4.5 cents per share (1996 - 3.5 cents), with full imputation credits attached. The dividend will be paid on the 9th March 1998. Overseas shareholders will also be paid a supplementary dividend.

      Cash Flows/Balance Sheet
      The group has reported net operating cash flows for the period of $8.889 million, a 58% increase on the previous period.

      The group's balance sheet continues to strengthen with an equity ratio of 44.7% (1996 - 43.7%) and a working capital ratio of 2.9:1 (1996 - 3.1:1).

      Temporary seasonal bank funding was utilised in the October - January period, but has since been repaid in January.

      Forecast for the year ended 30 June 1998
      th uncertainty of trading conditions over the next five months makes forecasting our year end situation difficult. At this stage, our forecast profit position is in the $6.2 - $6.6 million range.

      New Director
      I am pleased to announce the appointment of Mr Gary Gwynne, as Director of Michael Hill International.

      Gary who is based in Auckland, has an extensive background in Marketing and Advertising (he was one of the principal directors of Colenso Communications) and currently operates the "Outdoor Heritage" chain of nineteen apparal stores throuhgout New Zealand and Australia.

      Gary, who is 52, has considerable skills which our company will be able to make use of. He has been working closely with the board over the past six months in a consulting capacity.

      We welcome him to the Board.

      The Future
      The company will continue its stratagy of controlled profitable growth over the coming years. As well as opening new stores, emphasis will continue to be given to improving the profitability of existing stores. Over the next 4 years, there are opportunities to open an additional 40 plus stores in Australia. This growth and the company's comprehensive retail management and training systems will ensure that the company remains at the forefront of jewellery retailing in Australasia.

      The Directors remain confident in the continued growth and profitablility of the group.

      On behalf of the Directors


      R. M. Hill

      Chairman
      20/2/98


      Tuesday, 21st October 1997 - NOTICE OF MEETING.

      Notice is hereby given that the Annual Meeting of Shareholders of Michael Hill International Limited ("the company") will be held on Thursday 6 November 1997, at the Settlers Lodge, Waimauku Station Rd, Waimauku at 2pm. For those shareholders requiring transport, a special train will leave Auckland Railway Station, Beach Rd at 12.35pm ( Platform 4 ).

      Annual Meeting
      Thursday 6th November 1997 at 2.00pm
      Settlers Lodge, Waimauku Station Rd, Waimauku
      Proxies close: 4th November 1997, 5pm

      Dividends Payable
      Interim - March
      Final - October

      Financial Results Announced
      Half Year - February
      Annual - August


      Tuesday, 25th February 1997

      CONSOLIDATED OPERATING STATEMENT
      FOR THE HALF YEAR ENDED 31ST DECEMBER 1996

      Audited (NZ$'000)
                                                Current         Previous
                                                Period     Corresponding
                                                                  Period
      
      OPERATING REVENUE
       Sales revenue                            65,763          59,904
       Other revenue                                80              85
      Total operating revenue                   65,843          59,989
      
      OPERATING PROFIT (LOSS)
       BEFORE TAX                                6,742           6,371
      Less tax on operating profit               2,376           2,241
      Operating profit (loss) after tax
       but before minority interest              4,366           4,130
      Less minority interests                        -               -
      Equity earnings                                -               -
      
      OPERATING PROFIT (LOSS)
       AFTER TAX ATTRIBUTABLE TO
       MEMBERS OF LISTED ISSUER                  4,366           4,130
      Extraordinary items after tax
      Less minority interests
      Extraordinary items after tax
       attributable to members of the
       Listed Issuer
      
      TOTAL OPERATING PROFIT (LOSS) AND
       EXTRAORDINARY ITEMS AFTER TAX             4,366           4,130
      Operating Profit (Loss) and
       Extraordinary Items after Tax
       attributable to Minority Interest
      Operating Profit (Loss) and
       Extraordinary Items after Tax
       attributable to Members of the
       Listed Issuer                             4,366           4,130
      
      EPS                                      11,3cps         10.7cps
      
      SHAREHOLDERS' EQUITY
       ATTRIBUTABLE TO MEMBERS OF
       THE HOLDING COMPANY                     28,856          26,153
      

      Michael Hill International has announced a record tax paid profit of $4.366m for the 6 months to 31st Decemebr 1996 (1995 - $4.130m) This 5.7% increase in profit was achieved on a turnover of $65.763m (1995 - $59.904m) This positive result was achieved despite continuing difficult retail trading conditions in both Australia & New Zealand. The directors have declared a 16% increase in the interim dividend to 3.5cps (1995 - 3.0c) with full imputation credits attached. The dividend will be paid on 17th March 1997 Record Date: 7th March 1997. Overseas shareholders will also be paid a supplementary dividend. The retail trading conditions in both Australia and New Zealand, make forecasting our year end situation difficult. At this stage, our forecast profit position is in the $5.3 to $5.5m range.

      The company will continue with its strategy of controlled growth over the coming years. Emphasis will continue to be given to improving the profitability of existing stores. The company's comprehensive retail management and training system will ensure that the company remains at the forefront of jewellery retailing in Australasia. The directors remain confident in the continued growth and profitability of the group.


      Friday, 8th November 1996

      In the Chairman's Address to the AGM help on the 8th November, Michael Hill advised the following:

      The first 3 months trading of the new financial year, which is traditionnally the lightest trading period of the year, has been very satisfactory. Total revenue is up 11% on last year and after tax profit is comfortably up on last year and ahead of budget. However, it must be emphasized that our major trading period is still ahead of us in the November - January period. In the next 12 months there are plans to open up to 8 new stores, depending on whether we can get the right sites in Australia and New Zealand. We continue to consolidate the improve the earnings from our existing stores and remain confident of another record tax paid profit in this coming year. One of the few threats we are constantly facing is the excessive rental increase from Shopping Mall owners in both New Zealand and Australia. This is a concern shares by the major retailers in both countries. Controlled profitable growth is our goal - and shareholder returns will flow through this approach".

      Full copies of the Address are available from the Exchange on request.

       
       

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