Kathmandu fell shy of its earnings forecasts when it revealed its full-year result today – its first as a listed company.
Earnings before interest and tax rose 12.4% to $47.9 million, excluding costs of its November IPO, below the $50.6 million forecast.
However the adventure wear retailer was able to raise its first dividend payout to 7 cents per share, from the forecast 6.7 cents, buoyed by strong operating cashflows.
Net profit for the year to July 31 rose $10.3 million to $25.2 million, excluding IPO costs.
The addition of 15 more sales to the chain, ten of which were in Australia, helped sales rise 14% to NZ$245.8 million – to beat the $240 million forecast.
Same store sales rose 1.3%.
Kathmandu chief executive Peter Halkett said the company had grown sales and profit over the three countries it trades in – New Zealand, Australia and the UK, despite the variable and uncertain retail environment.
Although trading had been strong in the first half, conditions had been more difficult in the six months since January with a warm Easter and below-average takings from winter sales.
Trading across the UK stores had met expectations.
Kathmandu confirmed plans to open four new stores in the next year, with negotiations underway for two more – all in Australia – as it worked towards a target of 150 store target across both sides of the Tasman.
“Given reasonably stable economic conditions we expect to again achieve improved results in the year ahead,” said Mr Halkett.
Kathmandu shares, which sold for $2.13 in the IPO, rose 1 cent today to $1.78, having fetched as high as $2.57 and as low as $1.54 since listing,
The company, founded by Jan Cameron, was taken public by its private equity owners Goldman Sachs JBWere and Quadrant Private Equity, last year.
Georgina Bond
Fri, 24 Sep 2010