Michael Hill improves - just

By Phil Boeyen, ShareChat Business News Editor

Friday 24th August 2001

Jeweller Michael Hill (NZSE: MHI) has managed to eke out a slightly higher full-year profit.

For the year ended June the jewellery manufacturer and retailer has posted a profit of $10.04 million, up from last year's $9.94 million.

The 1% increase in profit was achieved on turnover of $189.17 million, an better figure than last year's $181.98 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 company says.

New Zealand earning before interest and tax rose 7.3% over last year and as a percentage of revenue remained steady at 11.2%. Same store sales increased overall by 2.9%.

Results across the Tasman again dragged results down. Although the Australian business improved revenue by 1.7%, with same-store sales up 3.5%, Ebit fell 3% to $10.35 million.

"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.

"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 group has declared a final dividend of 8.5 cents per share.

Since balance date the company has sold its NZ head office building in Whangarei for $1.5 million with settlement due next month and is also placing its Australian head office in Brisbane on the market.

The Brisbane buildings are being sold in two stages and should realise around A$6.6 million.

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