David Kindl pleased with Noni B's improved sales results

24 Aug '12

4 min read

Noni B Limited, the fashion retailer, announced an after-tax profit of $2.7 million for FY2012 (53 weeks), compared with a statutory after-tax profit of $0.2 million ($0.7 million before goodwill impairment) for FY2011 (52 weeks). This was at the top end of the earnings guidance provided by the company last month.

Sales revenue was $119.7 million, an increase of 2% over the previous year ($117.3 million), and net margin also increased.

Cash flow from operations remained strong at $7.0 million (FY2011: $5.2 million). At 1 July 2012 the company's cash balance was $9.3 million (26 June 2011: $5.5 million) and it had no bank borrowings.

The company has declared a fully franked final dividend of 3.5 cents per share (FY2011: nil), with a record date of 11 October 2012 and payable to shareholders on 25 October 2012. This will bring total dividends for the year to 6.0 cents fully franked (FY2011: 1.0 cent).

'We are very pleased with this improved result in a retail environment that has remained challenging throughout the year It reflects our success in differentiating Noni B through providing personal service to our customers and careful management of all aspects of the business,' said David Kindl, joint managing director.

Customer Focus

'We recognize that our staff is critical to our success; they look after our customers every day with support from the entire Noni B team. To ensure our customer service is second to none, we have continued to invest in training and all our store managers now have qualifications in retail studies. This professional service, combined with a passion for fashion and a culture that puts the customer first, makes Noni B our customers' favourite store.

'All members of our team are encouraged to propose initiatives to improve the company's performance. One of these - our Styling by Appointment service introduced during the year - has been successful in attracting customers who want personal attention to choose the fit, style and colour that suits them.

'Membership of our loyalty club continues to expand and 100,000 new customers were added to our database during the year, many with contact details enabling us to engage with them through electronic and social media,' said David Kind!.

Operational Focus

'Noni B has successfully increased its margin by offering great product which our customers desire and by introducing new ranges that satisfy their changing lifestyles. In addition, by scheduling promotions as part of a controlled marketing plan, and directing our marketing budget towards maintaining customers' loyalty, we have been able to contain discounting.

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