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FINANCIAL REVIEW - DISCUSSION AND ANALYSIS
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Surplus After Tax
The Groups surplus after tax was $16,510,000 a 9.6% increase on last years surplus.Total sales went up from $259.777m to $271.573m,a 4.5% increase. The Australian retail segment again performed strongly with an increase in operating profit of NZ$1.262m over the previous year.
The operating loss in Canada reduced from NZ$980,000 to NZ$856,000 in its second full year of operation.The directors are satisfied with this result and more stores are planned in Canada for 05/06.
Occupancy costs for the group represented 7.0% of sales this year compared to 6.7% last year.
Depreciation for the group was $5.903m down from $6.025m last year.
CASH FLOW
Net cash flow from operating activities was $10.089mm compared to $24.779m last year. Key drivers were:
" an increase in payments to suppliers of $19.073m an 8.3% increase on last year due mainly to the stocking of 14 new stores during the year.
" an increase in income tax paid of $2.977m an increase of 62%.
Net cash outflow relating to investing activities was up by $2.588m to $8.712m. Key driver was:
" purchase of new assets increased to $9.153m up from $6.409m also due to the investment in 14 new store fitouts.
Net cash outflow from financing activities was $8.107m compared to $6.487m last year due mainly to:
" Dividends paid increased to $8.496m from $6.944m 03/04.
BALANCE SHEET
Net assets increased from $57.607m at the end of 03/04 to $65.389m this year. Long term borrowings decreased slightly to $40.163m from $40.604m last year. The net debt to debt plus equity ratio decreased to 33.5% from 31.6% last year. The equity ratio at year end was 50.1% compared to 46.9% at the same time last year. Total assets went up from $122.831m to $130.421m due principally to inventories increasing by $9.5m The working capital ratio increased from 4.3:1.0 to 4.5:1.0
EVENTS AFTER BALANCE DATE
There were no events after balance date requiring disclosure.
SHAREHOLDERS RETURNS
" Declared dividends total 23 cents per share compared to 21 cents for 03/04.
" Shares traded between $5.89 and $8.40 ending at $7.60 at 30 June 2005.
" Average return on equity was 26.8% compared to 28% last year.
" Average return on total assets was 13.0% compared to 13.0% last year.
Trend Statement
| FINANCIAL PERFORMANCE |
2005
|
2004
|
2003
|
2002
|
2001
|
2000
|
1999
|
| |
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
| Group Sales |
271,573
|
259,777
|
224,802
|
214,105
|
189,168
|
181,983
|
156,940
|
| Profit before depreciation,amortisation & interest (EBITDA) |
31,896
|
29,892
|
24,022
|
25,623
|
21,590
|
21,348
|
18,059
|
| Depreciation and amortisation |
5,978
|
6,100
|
5,165
|
4,965
|
4,406
|
4,397
|
3,072
|
| Profit before interest and Tax |
25,918
|
23,792
|
18,857
|
20,658
|
17,184
|
16,951
|
14,987
|
| Net interest |
1,567
|
1,729
|
2,220
|
1,960
|
2,054
|
1,434
|
1,438
|
| Profit before taxation |
24,351
|
22,063
|
16,637
|
18,698
|
15,130
|
15,517
|
13,549
|
| Income tax expense |
7,841
|
7,003
|
5,067
|
5,992
|
5,091
|
5,578
|
4,775
|
| Operating profit after tax attributable to members |
16,510
|
15,060
|
11,570
|
12,706
|
10,039
|
9,939
|
8,774
|
| Net operating cash flow |
10,089
|
24,779
|
6,789
|
8,871
|
7,887
|
14,214
|
2,781
|
| Ordinary dividends per share paid out |
8,496
|
6,944
|
14,266*
|
5,978
|
2,518
|
5,216
|
4,444
|
| * includes a special dividend of 7,710. |
| |
| FINANCIAL POSITION |
2005
|
2004
|
2003
|
2002
|
2001
|
2000
|
1999
|
| |
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
| Cash |
7,234
|
14,017
|
2,294
|
685
|
637
|
0
|
0
|
| Other Current Assets |
96,215
|
84,973
|
83,161
|
77,825
|
67,537
|
62,134
|
59,082
|
| Other non-current assets |
23,632
|
21,394
|
21,877
|
16,449
|
22,235
|
19,635
|
14,583
|
| Future income benefits |
3,193
|
2,225
|
1,598
|
1,061
|
417
|
0
|
0
|
| Total tangible assets |
130,274
|
122,609
|
108,930
|
96,020
|
90,826
|
81,769
|
73,665
|
| Intangible assets |
147
|
222
|
298
|
393
|
505
|
625
|
756
|
| Total Assets |
130,421
|
122,831
|
109,228
|
96,413
|
91,331
|
82,394
|
74,421
|
| Current interest bearing debt |
0
|
0
|
172
|
174
|
225
|
192
|
185
|
| Other liabilities |
23,194
|
23,133
|
15,530
|
13,917
|
13,031
|
17,747
|
15,336
|
| Total current liabilities |
23,194
|
23,133
|
15,702
|
14,091
|
13,256
|
17,939
|
15,521
|
| Term borrowings |
40,163
|
40,604
|
42,299
|
27,965
|
27,525
|
21,859
|
21,049
|
| Deferred taxation |
0
|
0
|
0
|
0
|
0
|
9
|
800
|
| Other long term liabilities |
1,675
|
1,487
|
1,179
|
1,029
|
978
|
0
|
0
|
| Total liabilities |
65,032
|
65,224
|
59,180
|
43,085
|
41,759
|
39,807
|
37,370
|
| |
| Net assets |
65,389
|
57,607
|
50,048
|
53,328
|
49,572
|
42,587
|
37,051
|
| |
| Reserves and retained profits |
57,495
|
50,124
|
43,036
|
46,031
|
41,860
|
34,875
|
29,339
|
| Paid up capital |
8,261
|
8,078
|
7,712
|
7,712
|
7,712
|
7,712
|
7,712
|
| Treasury Stock |
(367)
|
(595)
|
(700)
|
(415)
|
0
|
-
|
-
|
| |
| Total shareholder equity |
65,389
|
57,607
|
50,048
|
53,328
|
49,572
|
42,587
|
37,051
|
| |
| Per ordinary share |
|
| Basic earnings per share before abnormals |
42.8¢
|
39.1¢
|
26.6¢
|
32.0¢
|
26.03¢
|
25.8¢
|
22.8¢
|
| Basic earnings per share after abnormals |
-
|
-
|
30.0¢
|
33.0¢
|
-
|
-
|
-
|
| Diluted earnings per share |
41.9¢
|
38.2¢
|
29.3¢
|
32.2¢
|
-
|
-
|
-
|
|
Dividends declared per share
- Interim
|
9¢
|
8¢
|
7¢
|
7¢
|
6.5¢
|
6.0¢
|
5.5¢
|
| - Final |
14¢
|
13¢
|
30¢
|
10¢
|
8.5¢
|
7.5¢
|
6.0¢
|
| |
| Net Tangible asset backing |
$ 1.69
|
$1.49
|
$1.29
|
$1.37
|
$1.27
|
$1.09
|
$0.95
|
| |
| ANALYTICAL INFORMATION |
2005
|
2004
|
2003
|
2002
|
2001
|
2000
|
1999
|
| EBITDA to sales |
11.7%
|
11.5%
|
10.7%
|
12.0%
|
11.4%
|
11.7%
|
11.5%
|
| EBIT to sales |
9.5%
|
9.2%
|
8.4%
|
9.6%
|
9.1%
|
9.3%
|
9.5%
|
| Profit after tax to sales |
6%
|
6%
|
5%
|
6%
|
5%
|
5%
|
6%
|
| EBIT to total Assets |
19.9%
|
19.4%
|
17.3%
|
21.4%
|
18.8%
|
20.6%
|
20.1%
|
| Return on Average Shareholders funds |
26.8%
|
28.0%
|
22.0%
|
23.9%
|
21.8%
|
24.9%
|
25.3%
|
| Current assets to current liabilities |
4.5
|
4.3
|
5.4
|
5.6
|
5.1
|
3.5
|
3.8
|
| EBIT interest cover |
16.5
|
13.8
|
8.5
|
10.5
|
8.4
|
11.8
|
10.4
|
| Effective tax rate |
32.2
|
31.7%
|
30.5%
|
32.0%
|
33.6%
|
35.9%
|
35.2%
|
| |
| Gearing |
|
| Net borrowings to equity |
50.4%
|
46.2%
|
80.3%
|
51.5%
|
54.7%
|
51.8%
|
57.3%
|
| |
| Other |
|
| Shares issued at year end |
38,617,164
|
38,537,512
|
38,419,162
|
38,471,352
|
38,558,600
|
38,558,600
|
38,558,600
|
| Treasury stock at year end |
91,436
|
121,088
|
139,438
|
87,248
|
0
|
0
|
0
|
| Jewellery stores at year end |
156
|
143
|
134
|
120
|
115
|
106
|
102
|
| Exchange rate for translating Australian results |
0.92
|
0.88
|
0.89
|
0.82
|
0.79
|
0.8
|
0.84
|
| Exchange rate for translating Canadian results |
0.87
|
0.84
|
0.8
|
-
|
-
|
-
|
-
|
| Includes 20¢ special dividend. |
|
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