Kirkcaldies reports small profit from retail business

Friday 29th April 2011

Kirkcaldie & Stains made $1000 profit from $18.9 million of sales in its retail business in the six months to February 28.

The company operates a premium department store in Wellington and subsidiary, Kirkcaldie & Stains Properties Ltd, owns the Harbour City Centre in the central business district of Wellington.

Overall, the company reported a $380,000 interim net profit after tax, down from $725,000 last year, because of disruption caused by alteration to company buildings. The profit before tax of $561,000, was down from $1 million last year.

In the year to August 31 the retail business reported a $526,00 after-tax loss but the property business reported a $2 million profit before tax charges.

The company is paying an interim dividend of three cents a share on May 20.

Earthquake strengthening of the Harbour City Centre building adversely affected retail sales during the last two months of the interim period and also reduced rental income.

Retail sales of $18.9 million in the half-year were down $1 million, or 5%, on the same period last year. Sales from the concession areas of the store increased by 33.5% so total sales fell by 2.7%.

The company said public sector job cuts affected Wellington sales and discretionary spending on the whole was affected by the two Christchurch earthquakes.

Total expenses of $8.5 million were $100,000 less than during the same period last year, despite increased depreciation and amortisation charges and the impact of increasing inflation.

NZPA

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