FINANCIAL PERFORMANCE
The Groups surplus after tax was $21.017m a 33.2% increase on last years surplus. Total operating revenue went up from $309.229m to $350.184m a 13.2% increase.

The New Zealand retail segment achieved a same store sales increase of 4.6% and an increased segment result of NZ$13.570m up from NZ$10.180m the previous year.

The Australian retail segment achieved same store sales growth of 3.4% in Australian dollars and a segment result of NZ$20.723m compared to NZ$15.677m the previous year.

The Canadian same store sales improved 2.9% for the year in Canadian dollars. Total sales increased 59.5% to NZ$24.994m. The operating loss in Canada reduced from NZ$957,000 to NZ$5,000 in its fourth full year of operation.

The directors are satisfied with this result and more stores are planned in Canada for 2007/08.

The directors are pleased with the result for the group which was achieved with a focus on same store sales growth and margin management.

CASH FLOW
Net cash inflow from operating activities amounted to $41.114m compared to a net outfl ow of $2.360m last year. This improvement was achieved from stronger retail operating margins and also improved inventory management.

Net cash outflow relating to investing activities was up by $0.453m to $10.861m.

Net cash outflow from financing activities was $25.413m compared to a net infl ow of $9.092m last year. This increased net outflow was due to the company reducing borrowings from the bank with operating surpluses.

BALANCE SHEET
Net assets decreased from $74.759m at the end of the previous year to $72.504m this year. Long term borrowings decreased to $49.515m from $62.134m last year. The equity ratio at year end was 47.0% compared to 42.9% last year. Total assets went down from $174.338m to $154.340m due principally to inventories decreasing by $20.459m.

The working capital ratio decreased from 3.8:1.0 last year to 3.7:1.0 at 30 June 2007.

Events after balance date
There were no events after balance sheet date requiring disclosure.

Shareholders return
" Declared dividends total 26 cents per share up from 23 cents in 2005/06.
" Shares traded between $6.61 and $10.10, ending the year at $10.10.
" Return on average equity was 28.5% compared to 23.2% last year.
" Return on average total assets was 12.8% compared to 10.3% last year.

2005 to 2007 figures are presented under NZIFRS and are not directly comparable to prior periods as these are under previous NZGAAP.

Trend Statement

To download this page in PDF format for printing click here.