KRK
30/10/2012 16:01
FLLYR
REL: 1601 HRS Kirkcaldie & Stains Limited
FLLYR: KRK: Market Announcement - Full Year Result 2012
The Directors of Kirkcaldie & Stains Limited (the "Company") announce that
the Group's audited result for the year ended 31 August 2012 showed a net
loss after tax of $773,000 which compares to the prior year loss of $56,000.
The retail operations reported a pre-tax loss of $1,760,000 which compares to
a loss of $643,000 in the prior year. Sales revenue for the year fell from
$35.1 million to $34.2 million, a decrease of 2.6%. The gross margin
percentage decreased by 1.6% due to increased competitive pressures and the
impact of the rollout of the new merchandise system which was completed in
August 2012. Closing stock held for resale was down by $1,040,000 from last
year and this had a positive impact on the net cash flows from operations.
Despite the difficult retail trading environment, the focus remains in
bringing the retail business back into profitability.
The property operations reported a pre-tax profit of $908,000 compared to a
pre-tax profit of $626,000 in the prior year. The property business benefited
from the reinstatement of rental income from the new Country Road store which
opened in November 2011 and from the reinstatement, in April 2012, of rental
income from the newly redeveloped and earthquake strengthened space leased to
Contact Energy. However the result was negatively impacted by another
significant increase in insurance premiums and increased funding costs.
In September 2012 the property company entered into a long term agreement
with Contact Energy for the lease of 5 floors of the Harbour City Centre
building. The agreement requires a $6 million refurbishment of levels 4 and 5
and common areas of the building. This work commenced this month. Also this
month the property company entered into a conditional sale and purchase
agreement for the sale of the Harbour City Centre building. The agreement is
conditional on the purchaser carrying out a due diligence investigation of
the property, the board of directors approving the transaction, and the
shareholders of Kirkcaldie & Stains Limited approving the proposed sale.
The Group's balance sheet remains robust with shareholders' funds of $19
million which represents an equity ratio of 41%. The Harbour City Centre
building is shown in the financial statements as an asset of $26.8 million,
but the most recent valuation of August 2012, completed prior to the
agreement with Contact Energy mentioned above, values the asset at
$46,550,000 (last year: $46,500,000).
Given the disappointing result, the Directors resolved not to pay a final
dividend for the year ended 31 August 2012.
ENDS
Falcon Clouston
Chairman
For further information:
Mr John Milford
P O Box 1494
Wellington 6140
P: 04 494 7260
E: [email protected]
End CA:00229071 For:KRK Type:FLLYR Time:2012-10-30 16:01:02
