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 Briscoe Group Limited's half year, released on 11 September 2024:

Half Year Review

Briscoe Group Limited (NZX/ASX code: BGP)

Highlights for the 26-week period – 29 January 2024 to 28 July 2024:

• Record sales of $372.08 million, +0.77%
• Underlying trading profit of $40.58 million, 95% of last year’s half year NPAT
• Online sales as mix of total Group sales 18.77%, (LY 18.33%)
• Total costs less than 1% increase on last year
• Total Inventory $13.89 million (-11.55%) below last year
• $35.00 million capital investment made during the period
• Interim dividend of 12.50 cps, maintained from previous year

The directors of Briscoe Group Limited (NZX/ASX code: BGP) announce a net profit after tax (NPAT) of $33.21 million for the half-year ended 28 July 2024. The result includes a tax adjustment of $7.37 million that the Group is required to book under New Zealand Equivalent to International Accounting Standard 12, as a result of recent tax changes announced by the government. This deferred tax liability adjustment is a one-off, non-cash accounting entry which has no impact on Briscoe Group’s underlying profitability or dividend policy. Excluding this adjustment NPAT for the first half period was $40.58 million, 95% of last year’s first half reported profit. The half-year results are unaudited.