Australia slows Michael Hill first half

By Phil Boeyen, ShareChat Business News Editor

Friday 23rd February 2001

Jewellery company Michael Hill (NZSE: MHI) has nudged its interim profit higher despite what it says is a disappointing start to the financial year across the Tasman.

The company says the combined effect of the Sydney Olympics and the introduction of GST in Australia meant its operations there experienced difficult trading conditions in the first quarter.

Profit for the six months ended December rose to $7.75 million from $7.5 million the previous period, with sales up $4 million to $104 million.

The company's Australian operations increased revenue by 0.6% but earnings before interest and tax fell 1.7% to $7.9 million.

In New Zealand revenue grew by 11.2% for the six months with earnings before interest and tax up 12.1% on the previous period to $5.35 million.

Although interim profit was only slightly higher than the previous year the company has increased its interim dividend by 8% to 6.5 cents per share.

Michael Hill says the company's philosophy of controlled profitable growth continues, with plans to open a further four stores in Australia and New Zealand before the end of the financial year.

It says the opportunity still remains to open at least another 40 conventional stores in Australia over the next four to five years.

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