Sharechat Logo

Hallenstein Glasson Ltd Trading update and profit forecast

Wednesday 19th August 2020

Text too small?

The Company advises that the unaudited sales for the 12 months ended 1 August 2020 were $287.76 million, an increase of 0.1% on the prior year ($287.55 million).

Group unaudited net profit after tax is expected to be within the range of $27.2 million to $27.8 million, a decrease of approximately -5.1% on the prior year ($29.0 million).

During the last six months stores were closed in New Zealand from 26 March 2020 until 14 May. Stores in Australia were closed from 26 March 2020 and were re-opened over the Month of May. All stores in the state of Victoria are now closed with ten closing on the 20th July 2020 and the final store in Chapel Street Closing on 3rd August. Glassons.com web shop in Australia traded throughout the season but in New Zealand both Hallensteins.com and Glassons.com initially closed from 26 March 2020 but reopened to sell essentials on 4 April. We experienced significant growth online over the lockdown period in both countries and this has continued once stores re-opened.

Sales for the six-month period ended 1 August 2020 were down -6.2% on the same period last year, performing much better than anticipated due to the growth in online sales. Online sales grew 80.1% on the same period last year. For the full year online sales were 22% as a percentage of total sales but increased to 31% for the last 6 months. Whilst the sales have improved, the Company will continue to be cautious in regard to the future impacts of COVID-19.

The Company continues to take steps to preserve liquidity as previously stated, particularly managing stock levels and costs across the business. The negotiations with landlords are continuing.

The Directors have declared an interim dividend of 15 cents per share (fully imputed) (last year 20 cents per share) to be paid on 4 September 2020. The Group’s balance sheet and projected future cash flow remains strong. Stock levels are also well managed.

A full profit release will be made to the market on 25 September 2020 when a final dividend will be considered.

Following Auckland moving to Level 3 on Wednesday 12 August, thirteen Hallenstein Brothers stores and twelve Glassons stores are currently closed until the return to level 2 in Auckland.

Source: Hallenstein Glasson Ltd 



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Stride Property Ltd & Stride Investment Management Ltd (NZX: SPG) Office Acquisition Now Unconditional
Scott Technology Limited (NZX: SCT) Announces Strategic Partnership with Savoye
TIL Logistics Group Limited (NZX: TLL) Pacific Fuel Haul Receives Notice of Industrial Action
Vista Group International Limited (NZX: VGL) Vista Group Acquires 100% of Cinema Intelligence
Fonterra Shareholders' Fund (NZX: FSF) Q1 performance and Milk Price update
IPO Offer: New Zealand Rural Land Co
Infratil Limited 6-year Infrastructure Bonds
Cannasouth Limited (NZX: CBD) United Nations Vote to Reschedule Cannabis
Westpac Banking Corporation (NZX: WBC) Enters into Enforceable Undertaking with APRA
Tower Limited (NZX: TWR) Reaches Agreement for Club Marine Boat Customers

IRG See IRG research reports