HLG
25/03/2014 09:37
HALFYR
REL: 0937 HRS Hallenstein Glasson Holdings Limited
HALFYR: HLG: HLG half year result for the period ending 1 February 2014
Early winter Group sales ahead for Hallenstein Glasson
Hallenstein Glasson Group sales for the first six weeks of the Winter 2014
season are +2% on the same period last year, in direct contrast to unaudited
net profit for the six months ended February 1, 2014, of $6.177 million, a
decrease of -40% on the prior period last year ($10.371 million).
In announcing the six months result, CEO Graeme Popplewell, said that while
the early winter figures were only a modest improvement, they are a reversal
of the trend that was experienced during the first half of the year.
Popplewell said that the six months result was in line with guidance provided
to the NZX on January 21, 2014. Total comprehensive income for the period
after fair value adjustments was $6.389 million (2013: $10.339 million).
Group sales for the six months ended February 1, 2014, were $106.430 million,
a decrease of -8% on the prior period last year ($115.730 million).
"The balance sheet remains robust. Inventories are at acceptable levels at
$14.589 million and cash reserves stand at $16.4 million, down from $19.312
million at the start of the year.
We operate in a highly competitive environment which has, of recent times,
been increasingly characterised by discounting and sale activity. However,
for differing reasons, each chain in the group failed to execute the summer
season to potential.
There is still considerable work to do to ensure the business recovers
earnings to historic levels but we are encouraged by results over the past
few weeks. The key winter trading months of May and June will be critical to
achieving our targeted earnings for the winter season.
The appointment of Tracy Shaw, after a 15-month search, as new CEO for
Glassons, is an important element in returning Glassons to satisfactory
performance. Tracy, who commenced with us in February, has a wealth of
experience in woman's fashion on an international stage and brings much
needed expertise and drive to that brand" he said.
The Directors have declared an interim dividend of 12 cents per share (last
year 16 cents per share) payable April 17, 2014. In addition a supplementary
dividend of 2.1176 cents per share will be paid to shareholders not resident
for New Zealand tax purposes.
Graeme Popplewell
CEO
+64 21738728
25 March 2014
End CA:00248663 For:HLG Type:HALFYR Time:2014-03-25 09:37:24
