| |
|
FINANCIAL REVIEW - DISCUSSION AND ANALYSIS
|
Surplus After Tax
The Group’s surplus
after tax was $15,060,000 a 47% increase on last year’s surplus excluding
the unusual item for profit on sale of the Australian head office building
of $1,326,000. Total sales went up from $224,802,000 to $259,777,000 a
15.6% increase.
The main factor contributing
to this record result was an increase in the Australian same store revenue
of 9.8% which was achieved while maintaining its gross margin. NZ same
store sales increased 1.2% for the year.The NZ EBIT contained a one-off
write down associated with the pending centralisation of support services
to Brisbane of $705,000. If this one-off cost is added back to the NZ
EBIT then they enjoyed an increase in EBIT of 9.1% to $11,714,000. The
EBIT loss in Canada reduced from NZ$1,802,000 to NZ$1,366,000 in its first
full year of operation. The directors are pleased with this result and
more stores are planned in Canada for 04/05.
Occupancy costs represented
6.7% of trade sales this year compared to 6.5% last year.
Depreciation for the
group went up from $5,070,000 to $6,025,000 in 03/04.
CASH
FLOW
Net cash flow from
operating activities was $24,779,000 compared to $6,789,000 last year,
an increase of 265%.
Key drivers were:
- an increase in
receipts from customers of $21,001,000,a 8.7% increase on last year.
- a decrease in income
tax paid of $1,821,000,a decrease of 27.5%.
Net cash outflow relating
to investing activities was up by $1,283,000 to $6,124,000.
Key drivers were:
- cash flow from
sale of assets down from $5,335,000 (principally from sale of Australian
head office building) to $250,000 this year.
- purchase of new
assets decreased to $6,409,000,down from $10,313,000.
Net cash outflow from
financing activities was $6,487,000 compared to a net inflow of $78,000
last year due mainly to:
- Borrowings reduced
from $21,552,000 in 02/03 to only $6,593,000.
- Dividends paid
reduced to $6,944,000 from $14,266,000 (special dividend of $7,712,000)
in 02/03.
BALANCE SHEET
Net assets increased from $50,048,000 at the end of 02/03 to $57,607,000
this year.Long term borrowings decreased slightly to $40,604,000 from
$42,299,000 last year. The net debt to debt plus equity ratio decreased
to 32.5% from 44.5% last year. The equity ratio at year end was 46.9%
compared to 45.8% at the same time last year. Total assets went up from
$109,228,000 to $122,831,000 due principally to:
- Cash on hand up
$11,723,000.
- Inventories up
$3,768,000.
The working capital
ratio decreased from 5.4:1 to 4.3:1.
EVENTS AFTER BALANCE
DATE
There were no events after balance date requiring disclosure.
SHAREHOLDERS’
RETURNS
- Declared dividends
total 21 cents per share compared to 37 cents for 02/03 (which included
a special dividend of 20 cents per share).
- Shares traded between
$4.05 and $6.00 ending at $6.00 at 30 June 2004.
- Average return
on equity was 28% compared to 22% last year
- Average return
on total assets was 13.0% compared to 11.2% last year.
Trend Statement
|
2004
|
2003
|
2002
|
2001
|
2000
|
1999
|
1998
|
|
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
| Group
Sales |
$
259,777
|
$
224,802
|
$
214,105
|
$
189,168
|
$
181,983
|
$
156,940
|
$
141,254
|
| Earnings |
|
|
|
|
|
|
|
Surplus
before taxation,
before abnormals |
22,063
|
15,096
|
18,340
|
15,130
|
15,517
|
13,549
|
11,059
|
| Surplus
before taxation, after abnormals |
22,063
|
16,637
|
18,698
|
15,130
|
15,517
|
13,549
|
11,059
|
| Tax
provision |
7,003
|
5,067
|
5,992
|
5,091
|
5,578
|
4,755
|
3,867
|
Surplus
after tax,
before abnormals |
15,060
|
10,244
|
12,298
|
10,039
|
9,939
|
8,774
|
7,192
|
Surplus
after tax,
after abnormals |
15,060
|
11,570
|
12,706
|
10,039
|
9,939
|
8,774
|
7,192
|
| Dividend
Distributions |
6,944
|
14,266
|
5,978
|
2,518*
|
5,216
|
4,444
|
3,669
|
| Retained
surplus for year |
8,116
|
(2,696)
|
6,728
|
7,521
|
4,723
|
4,330
|
3,523
|
| Funds
Employed |
|
|
|
|
|
|
|
| Paid-up
ordinary capital |
8,078
|
7,712
|
7,712
|
7,712
|
7,712
|
7,712
|
7,712
|
| Reserves
and retained earnings |
49,529
|
42,336
|
45,616
|
41,860
|
34,875
|
29,339
|
24,605
|
| Shareholders'
funds |
57,607
|
50,048
|
53,328
|
49,572
|
42,587
|
37,051
|
32,317
|
| Non
current liabilities |
42,091
|
43,478
|
28,994
|
28,503
|
22,670
|
21,849
|
18,302
|
| |
99,698
|
93,526
|
82,322
|
78,075
|
65,257
|
58,900
|
50,619
|
| Utilisation
of funds |
|
|
|
|
|
|
|
| Non
current assets |
23,619
|
23,475
|
17,510
|
22,652
|
19,635
|
14,583
|
13,169
|
| Expenditure
carried forward/goodwill |
222
|
298
|
393
|
505
|
625
|
756
|
892
|
| Net
working capital |
75,857
|
69,753
|
64,419
|
54,918
|
44,997
|
43,561
|
36,558
|
|
$
99,698
|
$
93,526
|
$
82,322
|
$
78,075
|
$
65,257
|
$
58,900
|
$
50,619
|
| *There
was a change in accounting policy in 2001 regarding providing for
dividends. |
| |
| CASH
FLOW STATEMENT |
2004
|
2003
|
2002
|
2001
|
2000
|
1999
|
1998
|
|
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
| Net
profit before tax |
22,063
|
16,637
|
18,698
|
15,130
|
15,517
|
13,549
|
11,059
|
| Depreciation |
6,025
|
5,070
|
4,855
|
4,280
|
4,264
|
2,903
|
2,783
|
| Other
non-cash adjustments |
192
|
311
|
(350)
|
147
|
1,545
|
1,002
|
1,901
|
| Tax
paid |
(4,806)
|
(6,627)
|
(6,753)
|
(7,911)
|
(5,718)
|
(4,567)
|
(3,786)
|
|
| Dividends |
(6,944)
|
(14,266)
|
(5,978)
|
(5,410)
|
(4,638)
|
(4,059)
|
(3,091)
|
| Working
capital increase |
1,305
|
(8,602)
|
(7,579)
|
(3,759)
|
(1,394)
|
(10,106)
|
(3,455)
|
| Capital
expenditure |
(6,409)
|
(10,313)
|
(6,256)
|
(8,028)
|
(9,161)
|
(4,502)
|
(2,652)
|
| Other |
366
|
0
|
0
|
0
|
0
|
(30)
|
(82)
|
| Surplus
cash pre external funds |
11,792
|
(17,790)
|
(3,363)
|
(5,551)
|
415
|
(5,810)
|
2,677
|
| External
source of funds |
|
|
|
|
|
|
|
| Net
borrowings/(repayments) |
0
|
14,656
|
2,326
|
6,250
|
0
|
3,455
|
(1,750)
|
| Treasury
stock |
91
|
(312)
|
(435)
|
-
|
-
|
-
|
-
|
| Asset
sales |
285
|
5,472
|
1,808
|
178
|
146
|
222
|
238
|
| Surplus
cashflow |
$
12,168
|
$
2,026
|
$
336
|
$
877
|
$
561
|
($
2,133)
|
$
1,165
|
|
| STATISTICS
& OTHER FINANCIAL DATA |
2004
|
2003
|
2002
|
2001
|
2000
|
1999
|
1998
|
| Earning
per share |
39.07c
|
30.0c
|
32.95c
|
26.03c
|
25.8c
|
22.8c
|
18.7c
|
| Net
tangible asset backing |
$1.49
|
$1.29
|
$1.37
|
$1.27
|
$1.09
|
94.6c
|
82.1c
|
| Interest
cover (times) |
8.8
|
7.2
|
10.3
|
8.1
|
10.6
|
9.9
|
8
|
Cash
flow from operating
activities $000's |
$24,779
|
$6,789
|
$8,871
|
$7,887
|
$14,214
|
$2,781
|
$8,502
|
| Net
debt $000's |
$26,587
|
$40,177
|
$27,454
|
$27,113
|
$22,051
|
$21,234
|
$16,023
|
| Dividend
per ordinary share |
21.0c
|
|
|
†37.0c
|
|
|
17.0c
|
%
of tax paid profit as
ordinary dividend |
53.7%
|
56.6%
|
45.6%
|
25.0%
|
52.3%
|
50.5%
|
51.0%
|
| Working
capital ratio |
4.3:1
|
5.4:1
|
5.6:1
|
5.1:1
|
3.6:1
|
3.8:1
|
3.9:1
|
| EBIT/Sales
% before abnormals |
9.6%
|
7.9%
|
9.5%
|
9.1%
|
9.4%
|
9.6%
|
8.9%
|
| Return
on average capital funds |
28.0%
|
22.0%
|
23.90%
|
21.8%
|
24.9%
|
25.3%
|
24.0%
|
| Jewellery
stores at year end |
143
|
134
|
120
|
115
|
106
|
102
|
94
|
| Exchange
rate for translating Australian results |
0.88
|
0.89
|
0.82
|
0.79
|
0.8
|
0.84
|
0.83
|
| Exchange
rate for translating Canadian results |
0.84
|
0.80
|
-
|
-
|
-
|
-
|
-
|
|
