The Warehouse Group has reported a 2.4% dip in its 2009/10 net profit after tax (before unusual items), to $83.2 million, but has raised its dividend payout in a gesture of confidence in the company's future.The discount retailer said it was a resilient p
The Warehouse Group has reported a 2.4% dip in its 2009/10 net profit after tax (before unusual items), to $83.2 million, but has raised its dividend payout in a gesture of confidence in the company’s future.
The discount retailer said it was a resilient performance given the near-stagnant economy over the year to August 1.
The company’s second half profit was $26.2 million, compared with $28.4 million in the second half last year. Group sales for the year were $1.67 billion, down 2.8% on the previous year’s.
Chairman Keith Smith said The Warehouse had demonstrated the company’s resilience in difficult times.
As a sign of the board’s confidence in the company’s ability to continue generating solid operating cash flows, the directors raised the dividend payout ratio from 75% to 90% of adjusted net profit.
A final dividend of 8.5c was declared, bringing the total ordinary dividend for the year to 24c, up 3c a share, or 14.3%.
The Warehouse also declared a special dividend of 5c cents a share. This was in addition to a special dividend of 1.5 cents a share paid in March 2010.
The company’s reported net profit after tax for the year ended 1 August 2010 was $60.2 million, including a non-cash charge of $22.8 million required as a direct result of Government announced changes to the income tax deductibility of depreciation on certain buildings.
This compared to reported net profit after tax for the previous year of $76.8 million, which included a $7.4 million post tax charge relating to the exit from fresh food and liquor.
