Kirks boosts sales, cuts dividend

By Phil Boeyen, ShareChat Business News Editor

Friday 26th April 2002

Wellington department store Kirkcaldie & Stains (NZSE: KRK) has reported a 5.5% lift in first half earnings but has almost halved its dividend payout as it seeks to repay debt.

For the six months ended February, which includes the important Christmas trading period and one of the stores major sales, revenue rose 6.7% to $20.01 million from $18.76 million previously and profit improved by $56,000 to $1.067 million.

The directors describe the outcome as 'very satisfactory' and say the 6.7% increase in sales correlates well with the growth of the general New Zealand economy and in the retail sector in particular.

The interim dividend has dropped to 8 cents per share from 14.5 cent per share last year.

"The reduced level of dividend per share was advised in the company's investment statement. Funds are to be applied to reducing the debt required to purchase the Harbour City Centre," the company says.

"Shareholders can expect the dividend rate to rise as debt is repaid."

Kirks says settlement of the Harbour City Centre took place at the end of March, one month after the interim balance date, and shares issued during the rights issue will be fully eligible for the interim dividend.

The department store has recently begun a modernisation programme on the ground floor, which chairman Denis Tait says will be carefully managed to minimise inconvenience to customers and trading but also to maximise the benefit of opportunities in the Harbour City Centre.

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