Michael Hill International has today announced a tax paid profit of $11.701m for the 6 months ended 31 December 2005 compared to $12.353m for the corresponding period.
The accounts for the 6 months ended 31 December 2005 have been prepared to IFRS standards including comparatives for the previous corresponding period.
The trading profit was achieved on trading revenue of $163.702m up 5.7% on the corresponding period last year of $154.828m.
Major items contributing to the result for the 6 months were:
- Australian same store sales being 2.4% down for the six months period ($2,152,672).
- A change in accounting treatment for bonuses whereby annual bonuses are now accrued at the half year whereas previously they were accrued at the end of the financial year. This has resulted in a reduction in group profit by approximately $700,000 after tax compared to last year.
New Zealand Retail Operations
The New Zealand retail segment increased its revenue by 0.1% to $49.102m for the six months with earnings before interest and tax (EBIT) of $6.579m, compared to $7.044m for the corresponding period.
Same store sales during the 6 months increased by 1.5%.
EBIT as a percentage of revenue decreased from 14.4% to 13.4%.
Total stores operating in New Zealand at 31 December 2005 were 47.
Australian Retail Operations
The Australian Company improved its revenue by 6.0% to NZ$107.003m for the 6 month period with EBIT of NZ$11.911 compared to NZ$13.042m for the corresponding period. In Australian dollars, total revenue improved 6.0% with same store sales down 2.4% for the six months.
EBIT as a percentage of revenue decreased from 12.9% to 11.1%.
12 new stores were opened in Australia during the period, as follows:
Innaloo in Western Australia
St Ives in Sydney, New South Wales
Merrylands, Sydney, New South Wales
Elizabeth Shopping Centre, Adelaide, South Australia
Glendale, Central Coast, New South Wales
Plumpton, New South Wales
Southgate, Sydney, New South Wales
Bayside North, Frankston, Victoria
Helensvale, Gold Coast, Queensland
Arndale, South Australia
Mandurah, Western Australia
Tea Tree Plaza, South Australia
In total there were 114 stores operating in Australia as at 31 December 2005.
The exchange rate used for the translation of the Australian surplus was .92 (2004 - 0.92).
Canadian Retail Operations
The Canadian operation improved its revenue 60.8% for the 6 months to NZ$7.487m. In Canadian dollars total revenue improved 55.2% and same stores sales increased 6.3% for the six months.
There was an operating profit of NZ$0.003m for the 6 months compared to a loss of NZ$0.220m the previous year.
Three new stores were opened during the period:
Woodgrove, British Columbia
Cottonwood, British Columbia
Cherry Lane, British Columbia
The total number of stores open at 31 December 2005 was 10.
The exchange rate used for the translation of the Canadian loss was 0.82 (2004 0.85).
