Listed jeweller Michael Hill International has reported an improved operating profit and interim dividend for the six months ended December, continuing a recent trend of lifting its market performance.
Before-tax profit rose 12.7% to $32.34 million in the six months from $28.7 million in the previous corresponding period (pcp).
Revenue rose 7.3% to $288.8 million from $269 million and the reported profit grew 11.5% to $26.3 million from $23.6 million.
Cash flow from operations was $46.8 million at balance date, more than double that of the pcp.
An unimputed interim dividend of 2c per share was declared, up from 1.5c, but chairman Michael Hill warned that due to the internal restructuring of the group in December 2008, the company was unlikely to be in a position to impute dividends for the foreseeable future.
In his report to the NZX, Sir Michael said New Zealand retail revenue increased by 8.5% to $60.9 million for the period with an operating surplus of $12.2 million.
The Australian retail segment increased its revenue by 4.4% with same-store sales in local currency falling by 1.5% compared with a rise of 5.7% in the pcp.
Five new stores were opened in Australia during the period and one store was closed to give a total of 149 stores operating in Australia at balance date.
The Canadian operation increased its revenue by 21% and increased its operating surplus by more than 200%. Two new stores were opened to give 35 stores at balance date.
Sir Michael said the board was pleased with the progress of the United States operation in the past six months but acknowledged there was a long way to go before the business was proven in the US market.
"Focus remains on improving both the top-line sales and the margins in order to grow the bottom line of the nine stores over the coming 12 months."
