Interesting to see SFH's AGM announcement today that they are on track to achieve high single digit revenue growth in H1. Obviously the tough retail environment is not a constraint to growth for good operators. I understand that SFH/City Chic also has Myer concessions (which appears to be the main area of weakness for Review), however I don't believe they are as material a part of revenues as they are for Review.
In any case, I am very interested to see PGR's H1 result. I know that PGR's AGM announcement was cautious and PGR is very reluctant to provide H1 guidance given the importance of the Nov/Dec trading period, however with strong growth coming through from new contracts in Designworks and strong growth in swimwear from recent investments, it will need to be a very weak result from Review to drag H1 profit below 2018 (particularly given the H1 result in 2018 of $8.4m included $1m of takeover costs). Accordingly, absent a very poor result from Review, they should be able to comfortably match or exceed last years H1 dividend of 1.5cps , particularly given their cash demands are moderating after making recent investments in new contracts and swimwear growth. (For those with a more bullish perspective, if they match last years H1 EBITDA (before takeover costs) of $9.4m, and up their payout to 70% of NPAT, this would allow a H1 dividend of 2cps).
