Jewellery retailer Michael Hill International used a tax credit of nearly $53 million to help substantially boost its after-tax profit in the six months ended December 31.
The company's earnings before tax fell 37% to $17.9 million in the period from $28.5 million in the previous corresponding period (pcp).
However, once the adjusted tax credit had been added in, the bottom-line profit soared to $65.6 million from the $19.5 million reported last year.
Revenue rose by 8.5% to $226.9 million. The consolidated accounts show that the company's short-term borrowings reduced by nearly 27% to $24.5 million but the long-term debt increased by 90% to $53 million.
An interim dividend of 1c a share (1.2c in the pcp) was declared.
Chairman Michael Hill said the directors were satisfied with the result for the six months in light of the deteriorating economic conditions during the period.
New Zealand and Canada, in particular, felt the brunt of the worsening global conditions.
The expansion into the United States in September adversely affected the half-year result but the directors were confident the move would position the group well in the longer-term.
"The group's philosophy of controlled profitable growth will continue and further new stores are being evaluated in all markets. However, in the current economic climate only the very best opportunities will be considered.
"As a consequence, store growth may slow over the next 12 months until there are signs of an economic turnaround."
