Monday 23rd August 2021
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Michael Hill International Limited today announced its full year financial results for the 52-week period ended 27 June 2021.
The Board has previously stated its intention to restore dividend payments to historic levels as the pandemic recovery becomes more certain. After taking into consideration sales and margin performance, the strength of the balance sheet, and while also recognising the risk of ongoing trading disruption, the Board has decided to declare a final dividend of AU3.0 cents per share unfranked, fully imputed with conduit foreign income.
This represents total dividends for the year of AU4.5 cents per share and lays the foundation for a sustainable dividend profile going forward, subject to the impacts of ongoing trading disruptions.
Outlook for FY22
While the Company has experienced significant lost sales in the first seven weeks of FY22 due to lockdowns in Australia, strong early performance in Canada and New Zealand contributed to +17% group same store sales for the period (+20% against FY20). These early results further demonstrate the progress and traction of the brand, however the increased disruptions in Australia and now New Zealand, are significant. The Company has already lost 2,755 store trading days during the first seven weeks, resulting in -2% total store sales for the period, with an estimated impact on earnings of ~$5m compared to management expectations prior to the lockdowns.
On a positive note, to support our strategic roadmap and to further advance our digital transformation, the Company is pleased to announce the appointment of Keith Louie, to the newly created role of Chief Digital Officer. Keith brings a wealth of retail experience, eCommerce leadership and digital strategy to the Michael Hill business.
Michael Hill International CEO Daniel Bracken said:
“While I’m delighted to see incredibly strong results from Canada following its full reopening, and the resilience of our New Zealand business, the impact of extensive disruptions in Australia and now New Zealand are very concerning.
“That being said, our strong financial position provides us with a stable platform to continue our transformation journey, elevate the brand and further explore new opportunities across all channels and markets.
“With our strategic agenda progressing, we are placing a greater emphasis on digital, with the appointment of Keith Louie, as our first Chief Digital Officer. His appointment, alongside the recent arrivals of Amy Sznicer, Chief Retail Officer, and Jo Feeney, Chief Marketing Officer, adds significant expertise to our already high calibre leadership team.”
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