Historical

6 Months trading update to 31 December 2012

8:30am, 11 Jan 2013 | MONTHLY

Michael Hill International Limited
6 months trading update to 31 December 2012

Note that these figures represent 5 months accounting adjusted sales results plus December preliminary sales figures prior to final accounting adjustments and are unaudited. Revenue figures stated below include the Professional Care Plan (PCP) revenues brought to income during the period.

Revenue from sale of goods for the 6 months to 31 December 2012:

The following figures are in NZ dollars Last Year This Year % Var
Australia same stores 183,753,900 188,454,454 2.6%
New Zealand same stores 60,553,893 62,455,857 3.1%
Canada same stores 29,516,675 30,128,794 2.1%
United States same stores 6,634,201 6,684,981 0.8%
Total same stores $280,458,669 $287,724,086 2.6%

Australia all stores 189,550,222 206,699,761 9.0%
New Zealand all stores 60,907,953 63,188,946 3.7%
Canada all stores 30,353,540 36,235,725 19.4%
United States all stores 6,634,201 6,684,981 0.8%
Total all stores $287,445,916 $312,809,413 8.8%

Exchange rates used for the 6 months:
Australia 0.78 0.79
Canada 0.80 0.81
United States 0.79 0.82

The following figures are in local currency Last Year This Year % Var
Australia same stores AUD 142,607,491 148,531,784 4.2%
New Zealand same stores NZD 60,553,893 62,455,857 3.1%
Canada same stores CAD 23,596,688 24,523,620 3.9%
United States same stores USD 5,271,525 5,478,247 3.9%

Australia all stores AUD 147,090,553 162,925,790 10.8%
New Zealand all stores NZD 60,907,953 63,188,946 3.7%
Canada all stores CAD 24,256,876 29,505,246 21.6%
United States all stores USD 5,271,525 5,478,247 3.9%

December quarter sales, including the critical Christmas trading period, fell short of our forecasts and didn’t deliver the improvement over last year that the company had expected. However while all four markets struggled to gain traction over last year’s sales in the second quarter, it is still pleasing that all four markets achieved solid “same store” store sales for the half year.

Cash flow remains strong and our Professional Care Plan product continues to deliver good cash flow as well as contributing solidly to the Group’s revenue line (see below).

It should be noted that the revenue figures stated above include the current portion of income from the sale of PCP’s. The revenue from these plans is carried on the balance sheet as deferred revenue and is then brought to income over the life of the plans (three year and life time plans).

The following figures are in NZ Dollars Last Year This Year % Var
PCP revenue collected for the 6 months NZD 14,411,408 18,063,228 25.3%
PCP revenue brought to income for the 6 months NZD 1,466,312 5,059,515 245.1%

Half year EBIT for the Group is expected to be in the range of $34m to $36m compared to $34.775m for the corresponding period last year. The full half year results for the 6 months to 31 December 2012 are due for release to the NZX on 15 February, 2013.


Sir Michael Hill 11 January 2013
Chairman

All enquiries should be made to either Mike Parsell CEO phone +61 403 246655 or Phil Taylor CFO +61 413 709066