Briscoe Group shares yesterday reached a 12-month high of $1.20, after the company reported a profit of $6.5 million for the six months ended July 26.
The profit was more than double that of the previous corresponding period (pcp).
The directors also declared a fully-imputed interim dividend of 2c a share, double that of last year.
Yesterday's share price high was also double the 60c 12-month low.
The profit was generated on sales of $185.3 million, slightly ahead of the $181.9 million in the pcp.
Group managing director Rod Duke said gross margin percentage increased from 39.39% to 40.34%, reflecting predominantly the benefits being obtained from the new business software programme, which had been fully operational across the entire group for 12 months.
The system was proving effective in assisting with automated replenishment, as well helping achieve better analysis and management of inventory.
In the period under review, homeware sales dropped 0.9% from $126.14 million to $126 million, but sporting good sales increased 6.17% to $59.25 million.
"We are really pleased to be able to report such a good recovery for the first half of the year," Mr Duke said.
Excluding the $827,627 impairment adjustment as a one-off correction, the after-tax profit would have been 138% higher than the pcp.
The market continued to be competitive, with the level and frequency of discounting increasing, especially throughout the homeware market.
"The challenge for us has been to drive profitability without the reliance on substantial top-line sales growth," Mr Duke said.
The initiatives implemented around inventory management and cost control had protected the group's margins, and improved profitability.
Significantly reducing the size of the market function, and introducing steering committees to the buying process, while continuing to demand improved value on all lines, had contributed to a more efficient and effective cost base, he said.
Briscoe Group had deliberately limited the expansion of store numbers this year, choosing to focus on getting the best from its existing store network, Mr Duke said.
"We are optimistic about group performance as we move through the second half of this year," he said.
"Inventory is in great shape, and we will continue to benefit from the operating efficiencies, albeit at a diminishing rate, generated from the cost reduction initiatives implemented progressively since early last year."
