Michael Hill International provided some sparkle to the current reporting season by announcing a much improved operating profit for the 12 months ended June.
The best news for investors was an increase in final dividend to 2.5c per share, taking the total dividend to 4c from 2.5c in the previous corresponding period.
Earnings before interest and tax (ebit) for the period was $36.2 million, up 38.4% on the same period last year.
Revenue was up 7.6% to $443.3 million and the profit before tax was up 53.4% to $30.91 million.
While many commentators focused their attentions on the profit after tax, which fell substantially to $26.5 million, they failed to recognise that last year's $66.8 million profit included a deferred tax credit of $50.2 million.
Without the tax credit, last year's net profit would have been $16.6 million and the 2010 profit would have been a nearly 60% improvement.
Craigs Investment Partners broker Chris Timms said there was a lot of positive news in the MHI result.
"This is a gem of a result.
"You don't increase the dividend if you think you are going to be short of cash or will experience difficult times.
"MHI must be feeling reasonably comfortable to increase the dividend."
The improvement in same-store sales of 5.2% on the previous period was a welcome sign of an improvement in operations, he said.
On a segmental basis, New Zealand and Australia both improved in sales and profit for the group while New Zealand stores showed an improved margin.
The United States was still a challenge but the Canadian operations showed signs of a recovery although trading conditions had remained difficult.
