Sharechat Logo

Australia's PAS Group first-half earnings weighed on by unfavourable NZ Customs ruling

Wednesday 10th January 2018

Text too small?

Australia's PAS Group, whose suite of retail brands include Review, Black Pepper and JETS, says first-half earnings will be weighed down by a New Zealand Customs decision that didn't go its way last year. 

In 2016, the Mt Waverly, Victoria-based retailer won a $1.08 million refund from overpaying duty on Black Pepper products imported into New Zealand between 2005 and 2010. However, last year a decision on the level of interest accrued from the overpayments didn't go as far as PAS had anticipated, a spokeswoman told BusinessDesk. That meant the retailer had to reverse the proportion of interest it had expected but didn't receive. 

This contributed to A$1 million of one-off costs in the six months ended Dec. 31 alongside costs related to a takeover bid for PAS from cornerstone shareholder US-based Coliseum Capital Management and consulting fees on US expansion opportunities for the retailer. 

PAS expects first-half earnings before interest, tax, depreciation and amortisation to be between A$8 million and A$8.5 million after the one-off charges, down from A$11.6 million a year earlier. 

"Ongoing subdued consumer sentiment, industry-wide traffic headwinds and the elevated promotional environment flagged in our August results announcement have continued," managing director Eric Morris said in a statement to the ASX yesterday. "Like for like store sales in Review and Black Pepper, which were below the prior year for the first eight weeks of the half, have continued to be below prior year and the prevailing environment has also resulted in delays to wholesale orders in Designworks." 

PAS shares fell 2.4 percent to 40 Australian cents on the ASX yesterday.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

MARKET CLOSE: NZ shares drop 1% on global selloff, led by Synlait, Sky TV; CBL meeting delayed
Global appetite for NZ yield stocks on 'pause', Harbour Asset's Bascand says
Green Acres models 24/7 on-demand cleaning service on Uber
Ponzi scheme operator Hibbs sentenced to 8 years jail over $17.5M fraud
NZ dollar ekes out small weekly gain as investors fret about possible trade war
CBL watershed meeting deadline extended, Goldman Sachs hired as adviser
Tait Communications wins contract to upgrade London bus fleet
Still a healthy diagnosis
Auckland Airport sees 92% surge in Chinese tourists in February as annual figures hold strong
Allied Farmers to net $441,137 for receivable as PVL liquidator drops suit against directors

IRG See IRG research reports