Hallenstein Glasson posts H1 results
The Directors of Hallenstein Glasson Holdings Limited advise that the unaudited net profit after tax for the 6 months ended 1 February 2011 was $7.136 million (2010: $8.548 million), a decrease of 16.5%. Total Comprehensive Income for the year after fair value adjustments was $6.862 million (2010: $11.602 million).
Group sales were $100.612 million (2010: $102.322 million) a decrease of 1.7%. The result confirms guidance released to the NZX on 26th January 2011.
Chairman of Directors, Warren Bell commented that “the result has been driven by weaker than expected sales for Glassons in both New Zealand and Australia during the key Christmas trading period. The sales results during this period are critical to achieving our profit and this year we struggled to achieve our targets. Competition was particularly intense in womens apparel and we had to meet the market to ensure our inventory levels remained under control. At the end of the summer season our inventories were $14.247 million, compared with $13.572 million last year.
Both Hallensteins and Storm traded well over the Christmas periods and their results reflect that success.”
Cash reserves reduced during the period from $34.942 million to $20.177 million. A significant portion of this is due to changes in terms of supply with some of our key offshore suppliers. The volatility in cotton prices has meant that in order to secure fixed contracts on future orders we have had to pay suppliers earlier than in the past. Trade payables reduced by $3.5 million from year end, and prepayments increased by 5.7 million.
The Directors have resolved that the interim dividend remain unchanged at 14 cents per share. This will require $8.350 million, which although $1.214 million higher than profit after tax for the period is comfortably managed given the groups cash reserves.
The dividend will be paid on 15th April 2011 to those shareholders registered as at 8th April 2011.
In addition a supplementary dividend of 2.47 cents per share will be paid to those shareholders non resident for New Zealand tax purposes.
Low Ball Offers
We have been advised by our share registrars that parties associated with Mr Bernard Whimp have requested details of our share register.
We are aware that those parties (or others associated with Mr Whimp) have been making unsolicited offers to shareholders of other companies for their holdings at a price well below current market value.
The Securities Commission has issued warnings in respect of some of these offers, and shareholders are warned that if they receive an offer for their shares they should seek professional advice prior to signing any offer document.
Results by Segment
Glassons New Zealand
Sales were 6.1% behind the previous period, and net profit after tax down 24.3%. A difficult trading period over Christmas impacted profit although the stock position at the end of January was similar to the prior year.