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- Release Date: 23/01/14 10:30
- Summary: QUARTER: MHI: 6 Months trading update to 31 December 2013
- Price Sensitive: No
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MHI
23/01/2014 08:30
QUARTER
REL: 0830 HRS Michael Hill International Limited
QUARTER: MHI: 6 Months trading update to 31 December 2013
Michael Hill International Limited
6 months trading update to 31 December 2013
The below figures represent 5 months accounting adjusted sales results plus
December preliminary sales figures prior to final accounting adjustments and
are unaudited. Same stores and all stores revenue figures stated below
include the Professional Care Plan (PCP) revenues brought to income during
the period. The PCP income recognition pattern is based on existing
estimates and is subject to ongoing management review, and accordingly may be
adjusted at half year and year end. The prior period PCP revenue stated below
is included at the estimated amounts under the income recognition pattern
used and reported on at the time.
In line with the market announcement on 3 October 2013, the Group numbers
below are reported in Australian dollars.
Revenue from the sale of goods and services for the 6 months to 31 December
2013:
See attachment
The Group achieved solid growth for the 6 months, finishing 4.7% up on last
year for the same stores. This result was helped in part by the weakening of
the AUD against the other 3 currencies during the period. In local currency
our Australian same stores traded 1.4% up on the same period last year while
Canada experienced strong growth finishing 7.9% up for the half. Our New
Zealand stores continued to struggle and finished 4.1% down on last year for
the period. This fall in revenue for the half was in part due to the settling
in of a new retail management team mid 2013. The company is confident this
decline will be reversed in the coming months. The US business performed
solidly finishing 2.0% up for the 6 months however trade was adversely
affected by severe winter conditions leading into the key Christmas trading
period.
Our Professional Care Plan continues to deliver good cash flow to the
business and is now also contributing solidly to the Group's overall results.
The revenue from these plans is carried on the balance sheet as deferred
revenue and is then brought to income over the life of the plans (3 year
plans, and lifetime plans which are assigned a 10 year notional life for
income recognition purposes).
Half year EBIT for the Group is expected to be in the range of AU$29m to
AU$30m compared to AU$28.585m for the corresponding period last year. The
full half year results for the 6 months to 31 December 2013 are due for
release to the NZX on 14 February, 2014.
Sir Michael Hill 22 January 2014
Chairman
All enquiries should be made to Mike Parsell CEO phone +61 403 246655
End CA:00246308 For:MHI Type:QUARTER Time:2014-01-23 08:30:23
