| |
Michael Hill International operates Michael Hill Jeweller - an Australasian
retail jewellery chain with 115 stores between Australia and New Zealand
as at 31 June 2001. The Company began in 1979 when Michael Hill opened
the first store in the New Zealand town of Whangarei, some 160 kilometres
north of Auckland.
A unique retail jewellery formula that included dramatically different store designs, a product range devoted exclusively to jewellery and almost saturation levels of high impact advertising elevated the Company to national prominence and record sales.
The Company grew rapidly, expanding to 10 stores by 1987 - the same year it was listed on the New Zealand Stock Exchange. 1987 also saw expansion into Australia, opening the first store in August, in the Brisbane suburb of Indooroopilly.
Today the Group employs over 1200 full and part time employees in retailing,
manufacturing and administration. It has approximately 2200 shareholders
and is the most profitable publicly listed retail jeweller in Australia/New
Zealand.
Our Corporate Objectives:
- To provide a superior long term return for our shareholders.
- To provide employees with secure rewarding long term employment in
an environment where excellence is encouraged.
Our Vision:
- To strive for perfection in jewellery retailing and manufacturing, and provide the highest quality, service and value to our customers.
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2001
|
2000
|
|
Trading Results
|
|
|
|
Group revenue ($000's)
|
181,168
|
181,983
|
|
Group surplus after tax ($000's)
|
10,03
|
9,939
|
|
- First half
|
7,745
|
7,494
|
|
- Second half
|
2,294
|
2,445
|
| |
|
|
|
Financial Position
|
|
|
|
Total assets ($000's)
|
91,331
|
82,394
|
|
Total shareholders' funds ($000's)
|
49,568
|
42,587
|
| |
|
|
|
Ratios
|
|
|
|
Group surplus after tax to average
|
|
|
|
- Total assets
|
11.6%
|
12.7%
|
|
- Shareholders' funds
|
21.8%
|
24.9%
|
|
Earnings per share
|
26.0˘
|
25.8˘
|
|
Shareholders' equity
|
54%
|
52%
|
|
Interest cover (times)
|
8.1
|
10.6
|
|
Current ratio
|
5.1:1
|
3.5:1
|
| |
|
|
|
Number of stores 30 June
|
|
|
|
New Zealand
|
41
|
40
|
|
Australia
|
74
|
66
|
| Total |
115 |
106 |
| |
|
|
|
Distribution to shareholders
|
|
|
|
Dividends - including final dividend
|
|
|
|
- Per ordinary share
|
15.0˘
|
13.5˘
|
|
- Times covered by surplus after tax
|
1.73
|
1.90
|
| |
|
|
|
Issued and paid up capital
|
|
|
|
38,558,600 Ordinary shares ($000's)
|
7,712
|
7,712
|
| |
|
|
|
Share price - 30 June
|
$3.80
|
$2.85
|
|
|
- Group revenue up 4%
to $189 million.
- Group surplus after
tax increased to $10,039,000.
- Dividend up 11% for
the year.
- Nine new stores opened
during the year.
- An excellent 22% return
on shareholders' funds.
- Same store sales up
2.9% in New Zealand and 3.5% in Australia (GST adjusted) .
| TREND
STATEMENT
|
|
2001
|
2000
|
1999
|
1998
|
1997
|
1996
|
|
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
| Group sales |
$189,168
|
$181,983
|
$156,940
|
$141,254
|
$118,303
|
$110,060
|
|
|
| Earnings |
|
|
|
|
|
|
| Surplus before
taxation |
15,130
|
15,517
|
13,549
|
11,059
|
8,037
|
8,181
|
| Tax provision |
5,091
|
5,578
|
4,775
|
3,867
|
2,883
|
2,865
|
| Surplus after
tax |
10,039
|
9,939
|
8,774
|
7,192
|
5,154
|
5,316
|
| Dividend distributions |
2,518*
|
5,216
|
4,444
|
3,669
|
2,695
|
2,513
|
| Retained surplus
for year |
7,521
|
4,723
|
4,330
|
3,523
|
2,459
|
2,803
|
| Funds employed |
|
|
|
|
|
|
| Paid-up ordinary
capital |
7,712
|
7,712
|
7,712
|
7,712
|
7,712
|
7,712
|
| Reserves and
retained earnings |
41,856
|
34,875
|
29,339
|
24,605
|
20,310
|
18,396
|
| Shareholders’
funds |
49,568
|
42,587
|
37,051
|
32,317
|
28,022
|
26,108
|
| Long term debt
/ deferred tax |
28,503
|
22,670
|
21,849
|
18,302
|
18,904
|
18,001
|
|
$
78,071
|
$
65,257
|
$
58,900
|
$
50,619
|
$
46,926
|
$
44,109
|
| Utilisation
of funds |
|
|
|
|
|
|
| Non current assets |
22,652
|
19,635
|
14,583
|
13,169
|
13,106
|
13,621
|
| Expenditure carried
forward / goodwill |
505
|
625
|
756
|
892
|
974
|
1,146
|
| Net working capital |
54,914
|
44,997
|
43,561
|
36,558
|
32,846
|
29,342
|
|
$
78,071
|
$
65,257
|
$
58,900
|
$
50,619
|
$
46,926
|
$
44,109
|
| |
| *Note
change in accounting policy detailed in the notes
to the Financial
Statements. |
|
| |
| CASH FLOW
STATEMENT |
2001
|
2000
|
1999
|
1998
|
1997
|
1996
|
|
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
| Net profit before
tax |
15,130
|
15,517
|
13,549
|
11,059
|
8,037
|
8,181
|
| Depreciation |
4,280
|
4,264
|
2,903
|
2,783
|
2,398
|
2,003
|
| Other non-cash
adjustments |
147
|
1,545
|
1,002
|
1,901
|
(183)
|
1,372
|
| Tax paid |
(7,911)
|
(5,718)
|
(4,567)
|
(3,786)
|
(3,179)
|
(2,303)
|
| Dividends |
(5,410)
|
(4,638)
|
(4,059)
|
(3,091)
|
(2,695)
|
(2,012)
|
| Working capital
increase |
(3,759)
|
(1,394)
|
(10,106)
|
(3,455)
|
(4,028)
|
(2,175)
|
| Capital expenditure |
(8,028)
|
(9,161)
|
(4,502)
|
(2,652)
|
(2,751)
|
(3,750)
|
| Other |
0
|
0
|
(30)
|
(82)
|
(20)
|
(21)
|
| Surplus cash
pre external funds |
($
5,551)
|
$
415
|
($
5,810)
|
$
2,677
|
($
2,421)
|
$
1,295
|
| External source
of funds |
|
|
|
|
|
|
| Net borrowings/(repayments) |
6,250
|
0
|
3,455
|
(1,750)
|
1,152
|
(1,631)
|
| Asset sales |
178
|
146
|
222
|
238
|
101
|
241
|
| Surplus cashflow |
$
877
|
$
561
|
($
2,133)
|
$
1,165
|
($
1,168)
|
($
95)
|
|
|
| STATISTICS |
|
|
|
|
|
|
|
2001
|
2000
|
1999
|
1998
|
1997
|
1996
|
| Earnings per
share |
26.03˘
|
25.8˘
|
22.8˘
|
18.7˘
|
13.4˘
|
13.8˘
|
| Net tangible
asset backing |
$1.27
|
$1.09
|
94.6˘
|
82.1˘
|
71˘
|
66˘
|
| Interest cover
(times) |
8.1
|
10.6
|
9.9
|
8.0
|
6.1
|
6.0
|
| Net debt $000’s |
$27,113
|
$22,051
|
$21,234
|
$16,023
|
$17,710
|
$15,890
|
| Dividend per
ordinary share |
15.0˘
|
13.5˘
|
11.5˘
|
9.5˘
|
7.0˘
|
6.5˘
|
| % of tax paid
profit paid as dividend |
25.0%†
|
52.3%
|
50.5%
|
51.0%
|
52.3%
|
47.1%
|
| Working capital
ratio |
5.1:1
|
3.6:1
|
3.8:1
|
3.9:1
|
4.3:1
|
3.8:1
|
| EBIT/Sales % |
9.1%
|
9.4%
|
9.6%
|
8.9%
|
8.1%
|
8.9%
|
| Return on average
capital funds |
21.8%
|
24.9%
|
25.3%
|
24%
|
19%
|
22%
|
| Jewellery stores
at year end |
115
|
106
|
102
|
94
|
88
|
82
|
| Exchange rate
for translating Australian results |
.79
|
.80
|
.84
|
.83
|
.91
|
.87
|
|
|
| †Note
change in accounting policy relating to providing for
final dividend. |
|
|
|
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