Happier shopping at Pacific Retail

By Phil Boeyen, ShareChat Business News Editor

Thursday 14th June 2001

Pacific Retail Group (NZSE: PRG) is ringing the tills after a 34% improvement in net profit.

The retail group's profit has risen to $10.4 million for the year ended March, up from $7.7 million last year.

Revenues from its operating units - Noel Leeming, Bond & Bond, Computer City, Living & Giving and Pacific Retail Finance - were $402.2 million compared to $360 million last year.

The result follows an unsuccessful foray into online shopping via FlyingPig.co.nz, which the company wrote down at the half-year for $1.7 million.

Chairman Maurice Kidd says the board is confident the business is now in a sound state and he has awarded kudos to new CEO Peter Halkett.

"The internal appointment of Peter Halkett as chief executive has resulted in continued stability and consistency of decision making. He leads a strong and experienced management team focused on delivering sustainable profitability."

Mr Kidd says the latest result was achieved on the back of effective marketing, managed discounting, and the careful control of interest-free credit.

"With the group performing well in growth areas such as computers and communications products, as well as increasing whiteware market share, we have not only seen our sales increase but also enhanced margin retention.

" We expect further benefits from longer term projects such as logistics and stock management improvements to start coming on stream over the next few months."

Mr Kidd says both the company's finance arm, Pacific Retail Finance, and its Living and Giving chain have performed well, although he is not happy with the duties that have been imposed on Korean whiteware.

"We are disappointed by the Commerce Minister's decision, and by a process which has caused unnecessary disruption to our customers and distraction to management.

"However the action has had, and will have, no commercial impact on Pacific Retail Group. The experience has, however, encouraged us to source other international whiteware, which will leave us in an even stronger competitive position."

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