HLG
30/09/2015 09:11
FLLYR
PRICE SENSITIVE
REL: 0911 HRS Hallenstein Glasson Holdings Limited
FLLYR: HLG: HLG Full Year result for the period ending 1 August 2015
HALLENSTEIN GLASSON HOLDINGS LIMITED
RESULTS FOR THE FULL YEAR TO 1 August 2015
The directors advise that the audited net profit after tax for the 12 months
to 1 August 2015 was $17.386 million, an increase of 21.77% over the
corresponding period last year ($14.278 million).
Group sales for the period were $221.520 million, an increase of 6.51%over
the corresponding period last year ($207.984 million).
Total Group Comprehensive Income for the period was $19.122 million, ($14.445
million).
Commenting on the result CEO Graeme Popplewell said "the 2014/15 financial
year had shown solid growth over the prior year. In particular losses in
Australia had been turned around and steady progress was being made in that
market. Glassons in New Zealand however has been disappointing by
comparison. "
Dividend
The Directors have declared a final dividend of 16.5 cents per share, payable
on 4th December 2015 to shareholders on the company's register as at 5:00pm
27th November 2015. Together with the interim dividend of 14.5 cents per
share paid 17th April 2015 the dividend for the full year is 31.0 cents per
share (last year 28.5 cents per share). The balance sheet remains strong
which enables the Company to continue its dividend policy.
Segment Results
Glassons New Zealand
For the full year sales increased 2.50% and profit after tax was down
-16.50%. Changes in executive during the year saw a disruption to the
momentum Glassons were experiencing in the earlier part of the year. New
management is now in place and are working towards recovering lost ground.
Glassons Australia
In Australia sales improved 18.52% (in Australian dollars). Same store sales
increased 12.63%.
During the year two new stores were opened and one store closed. Net profit
after tax was $170,000, against a loss of ($1,505,000) last year.
Hallensteins
For the full year sales 6.82% and profit after tax increased 29.36%.
Hallenstein Brothers have firmly cemented their position in the young male
fashion market in New Zealand and continue to lead with way through product
innovation and engaging marketing campaigns.
Storm
Sales in Storm increased 4.36% and Net Profit after Tax improved 37.59%.
Storm continues to deliver solid results in a highly competitive segment of
the market.
E-Commerce
Sales account for 5.39% of the total group sales and increased 8.70% during
the year. Continued investment and innovation is being made with the
objective of growing sales further in this channel.
Future Outlook
Group sales for the first 8 weeks of the season are +4% on the prior year
however intense competition has meant sales have been achieved at the expense
of margin compared to the same period last year. The impact of a weaker New
Zealand and Australian dollar is beginning to exert margin pressure and the
ability to raise prices to compensate is limited. It is however not possible
to take any real inference from these numbers as the December trading period
contributes such a large proportion of sales and profit for the season.
Investment in our stores continues and it is critical we provide a unique and
exciting shopping environment. The Glassons new store fitout first trialled
in Australia has shown very pleasing results and where lease commitments
allow will be further extended in both Australia and New Zealand. The first
new look store in Albany Auckland opened during August 2015 and results so
far have been positive. A further store will be refurbished in Auckland prior
to Christmas plus a new store at Northwest (Auckland) will open October 1.
Hallensteins have now substantially completed their key store refurbishment
program. They will also open a new store at Northwest (Auckland) on October
1.
The financial position of the group remains very robust. Stock levels are
well managed and the group is focussed on the key trading months of December
and January.
Further guidance will be given at the Annual Meeting of Shareholders in
December 2015.
Graeme Popplewell
CEO
30th September 2015
+64 21 738728
End CA:00270990 For:HLG Type:FLLYR Time:2015-09-30 09:11:05
