Thursday 20th December 2012 |
Text too small? |
Smiths City Group, the Christchurch-based department store operator, posted a 2.6 percent gain in first-half profit saying retail conditions are difficult, especially for consumer electronics.
Profit was $1.69 million in the six months ended Oct. 31, from $1.64 million a year earlier, the company said in a statement. Sales fell 0.2 percent to $109.7 million.
Trading conditions "have been difficult," said chairman Craig Boyce. "Household spending is restrained, appliance prices have fallen leading to lower dollar margins, competitor activity aggressive and business expenses, particularly occupancy and insurances expenses, have risen considerably."
The shares rose 3.7 percent to 56 cents and are up 23 percent this year. The retailer will pay an interim dividend of 1 cent a share, unchanged from a year earlier.
Smiths City has agreed to a banking facility with a major lender and will terminate its relationship with its existing financier in January 2014. The change will result in significant savings in interest costs, it said, without identifying the lenders involved.
The company focussed on sales of its most profitable lines, furniture and bedding, in the first half while re-opening stores shuttered by the Canterbury earthquakes.
It doesn't expect improvement in retail conditions any time soon, it said.
BusinessDesk.co.nz
No comments yet
Skellerup achieves another record result
August 21st Morning Report
Me Today signals capital raise and provides trading update
Seeka Announces Interim Result and Updates Guidance
FBU - Fletcher Building announces FY25 Results
August 20th Morning Report
RUA - New Zealand grown products support Rua's global strategy
Devon Funds Morning Note - 19 August 2025
Seeka Announces 15 cent Dividend
MCY - Major renewable build advanced despite 10% earnings dip