A strong South Island rural sector helped retailer Smiths City report a 22.7% increase in profit to $5.4 million for the year ended April 30.
Operating revenue remained flat at $222.5 million. The company had available carry-forward tax losses of $10.8 million and no income tax was payable in the period.
An unimputed final year dividend of 2.5c a share, unchanged from the previous period, would be paid on August 16.
Board chairman Craig Boyce said trading in the South Island was positive as the company had the advantage of a predominantly strong rural sector.
The North Island, particularly in the Wellington region, was more subdued. In Wellington, the company closed its underperforming Upper Hutt store and, in the current financial year, it would move to a superior location within the Porirua Mega Centre and open a new store on the Kapiti Coast.
The company would continue to investigate further North Island opportunities as they arose, he said.
Smiths City's Colombo St property, in Christchurch, was a major asset for group and, before the February 2011 earthquake, housed the company's largest retail store, its administrative office and five properties leased by third parties.
Having got the store trading with a smaller footprint, the company had continued to work with its insurers.
An indemnity payment of $5.5 million was received during the year and the board had approved plans to finalise areas still needing repair.
That would increase the available retail space to nearly what was available before the earthquake and bring the building up to 100% of the new building code, Mr Boyce said.
''Looking ahead, retail trading remains subdued in our sector and always highly competitive. However, having now put the earthquake behind us, the outlook for the group is positive.''
