Contact

Geoff Scowcroft
+64-9-815 3737
P.O. Box 884, Auckland Mail Centre, Auckland

Briscoe Group Limited Analysis

Overview

The company's beginnings date from 1862 when the first Briscoes warehouse and store was opened in Dunedin, by William Briscoe & Son. Australian and NZ operations were purchased by Merbank Corporation of Australia in 1973, and following extensive rationalisation, by Hagemeyer in 1977. Following several years of losses, the business was acquired by CEO Rod Duke, in 1990. Stock exchange listing followed a public issue of 40m shares at $1 each in November 2001.

By 2008, Briscoe Group Limited's retailing interests totaled 57 Homeware Stores and 32 Sporting Goods Stores.

Performance

The following information was extracted from Blackpearl Group's full year report, released 13 March 2024:

Highlights for the full year ended 28 January 2024:

  • Total record sales $792.0 million
  • Both Homeware and Sporting Goods segments delivered positive growth, +0.54% and +1.17% respectively
  • Gross profit margin 42.40%, protecting 47% of the 633 gross profit margin points gained across the two years impacted by Covid (years ended January 2021 and January 2022)
  • Online sales as mix of total Group sales 18.72%, (LY 18.97%)
  • Net profit after tax (NPAT) $84.2 million, 95% of last year’s record NPAT
  • Final Dividend 16.5 cps
  • Total Dividend for the year 29.0 cps, +3.57%

The directors of Briscoe Group Limited announce a net profit after tax (NPAT) of $84.2 million for the year ending 28 January 2024, representing 95% of the record $88.4 million reported for the previous year.

Board Chair, Dame Rosanne Meo announced that the directors have resolved to pay a final dividend of 16.5 cents per share (cps). The dividend is fully imputed and, when added to the interim dividend of 12.5cps, brings the total dividend for the year to 29.0 cps, an increase of 3.57% on the prior year. The final dividend will be paid on 27 March 2024. The share register will close to determine entitlements to the dividend at 5pm on 20 March 2024. The Company’s dividend policy is to pay out at least 60% of NPAT when calculated on a full-year basis. “We are delighted to be able to reward our shareholders with a record total dividend of 29.0 cents per share, achieved with an increased interim dividend earlier this year now also with this final dividend announcement.

“The team’s ability to consistently produce quality results is notable and indeed extraordinary, given the continued uncertainty and deterioration of the retail market during the twelve months to January 2024.”

Rod Duke, Group Managing Director, said: “We’re delighted to have produced another year of record sales against a macro retail environment which has seen many retailers struggling to hold their ground. It’s significant that the Group was able to grow sales across both the first and second halves as well as across each of the trading segments, homeware and sporting goods.

“The combination of a strong core business and the execution of strategic initiatives by an extremely talented team has again proved to be a great formula for success - delivering a bottom line equal to 95% of last year’s record NPAT.”

The earnings were generated on sales revenue of $792.0 million, an increase of 0.78% on the $785.9 million generated for the previous year.

As expected, gross margin percentage declined for the period from 44.02% to 42.40%. Rod Duke said, “Like all retailers we faced margin pressure from a number of factors as the impacts of the ongoing economic downturn were felt. However, the Group has differentiated itself by protecting a significant portion of the margin percentage increase achieved during the Covid pandemic. I’m extremely proud to report that this result will represent the protection of 47% of the 633 gross margin basis points gained during that period. The Group’s full year gross profit margin immediately prior to Covid (Year ended January 2021) was 39.43% compared to this year’s margin of 42.40% - a significant achievement which we have worked hard to deliver.”

Disclaimer: This section is provided as general information only. It is not intended as a substitute for legal or professional advice to company directors and officers or investors. NZX Limited disclaims any liability arising from the use of this information.