Announcement

FLLYR: BGP: FY to 27/01/2019 $63.39M ($61.32M) +3.37% Fin Div 12.00cps 10:40am 
BGP
12/03/2019 10:40
FLLYR
PRICE SENSITIVE
REL: 1040 HRS Briscoe Group Limited

FLLYR: BGP: FY to 27/01/2019 $63.39M ($61.32M) +3.37% Fin Div 12.00cps

BRISCOE GROUP LIMITED (NZX/ASX code: BGP)

Results for announcement to the market
Reporting Period; Full year 29 January 2018 to 27 January 2019
Previous Reporting period; Full Year 30 January 2017 to 28 January 2018

Amount (000s); Percentage change

Sales reveune from ordinary activities
$631,919 +4.4%

Profit from ordinary activities after tax attributable to shareholders
$63,393 +3.4%

Net Profit attributable to shareholders.
$63,393 +3.4%

EPS:
Basic EPS 28.7cps 27.8cps
Diluted EPS 28.3cps 27.3cps

Final Dividend:
Gross amount per share 12.00 cents
Imputed amount per share 12.00 cents

Record Date: 26/03/2019
Payment Date: 29/03/2019
Imputation tax credit: $0.046667

Briscoe Group Posts Record Profit

Highlights for the full year ended 27 January 2019
o Total sales $631.92 million, +4.43%
o Same store sales growth, +3.10%
o Gross profit $253.36 million, +4.74%
o Gross profit margin 40.09% (Last year 39.97%)
o EBIT $86.00 million, +3.16%
o NPAT $63.39 million, +3.37%
o Final dividend 12.00 cents per share, +4.35%
o Total dividend for the year 20.00 cents per share, +5.26%

The directors of Briscoe Group Limited announce a record net profit after tax
(NPAT) of $63.39 million the year (52 weeks) ending 27 January 2019, a 3.37%
increase on the $61.32 million for the previous year (52 weeks).

Group Managing Director, Rod Duke, said "We are pleased to announce another
record profit for Briscoe Group in a challenging retail market which
continues to contend with erratic consumer confidence and economic indicators
making customers even more determined than ever to seek true value for money.
The commitment and focus of the entire Briscoe Group team, both at Support
Office and throughout the retail operations network, has enabled us to remain
focused on delivering our unique value proposition which clearly resonates
strongly with customers."

The earnings were generated on sales revenue of $631.92 million, an increase
of 4.43% on the $605.14 million generated for the previous year.

Gross Margin dollars increased 4.74% for the period with gross margin
percentage increasing from 39.97% to 40.09%. The increased gross margin
percentage reflects improvements in stock-loss measurements from improved
loss prevention initiatives as well as targeted operational and buying
strategies designed to optimise the availability of product in relation to
online fulfilment stores and for specific promotional events.

As previously reported for the half-year result, the introduction of
accounting standard NZ IFRS 15: Revenue from contracts with customers, now
means sales revenue reported by the Group includes delivery fees charged to
online customers for the delivery of products purchased directly online. The
corresponding cost incurred by the Group for delivery of product to customers
is included in the total cost of goods sold. Previously these amounts were
offset and the net cost shown within store expenses. The reclassification has
the effect of increasing sales revenue and cost of goods sold, while
decreasing gross profit and store expenses. There is no impact on the Group's
reported net profit after tax. The table below shows the full-year effect of
the reclassification on selected Group reported amounts, for both this year
and last year.

(Refer table in attachment)

During the year $21.59 million of capital investment was made by the Group of
which $16.11 million represents predominantly development of property owned
by the Group in Auckland and Silverdale. The balance of capital investment
was for the fit-out of new and relocated stores, online platform
improvements, security system upgrades and enhancements to system software
and hardware.

Inventories totalled $81.02 million at year-end, $6.53 million higher than
the $74.49 million reported for last year, reflecting the impact of the two
additional Rebel Sport stores opened during the year, the increased demand
for online shopping as well as a higher mix of imported inventory this year
compared to last year's year-end position.

Mr Duke said, "Economic uncertainty had certainly tested consumer confidence;
increased wage pressures, erratic fuel prices and a challenging New Zealand
dollar, all factors which have and will continue to impact retailers' ability
to maintain margins.

"Providing customers with an exceptional shopping experience whether it be
through a physical store, via online - or both, is a major focus for us and
critical in defending our market position against new and emerging
competition.

"Our development programme progressed well during the year with two new Rebel
Sport stores; in Kerikeri during February 2018 and also at the new North Link
Retail Centre at Papanui, Christchurch in November. The Northlands Briscoe
Homeware store relocated to the North Link Retail Centre also during
November.

"Progress has continued at pace on the build to replace the Group's Support
functions in Taylors Road, Auckland. The new offices and retail space are on
track for the Support Office to relocate by September 2019 before the
temporary relocation of the existing nearby Briscoes Homeware store, to allow
for its complete rebuild.

"Our online business continues to produce excellent sales growth, finishing
the year around 27% up on the previous year and we look forward to the launch
of our new online platform later this year. We constantly review the size and
location of our fulfilments hubs to optimize the service level and cost to
serve from this important sales channel.

"We will continue to focus on our online offering while maintaining our
proven strategy of adding stores to our network as and when we identify
suitable opportunities. Leveraging customer data and our own knowledge and
experience, provides a rich platform for us to deliver an outstanding
shopping experience for customers to access the best brands at the best
prices."

The 2018/19 NPAT includes dividends received of $6.40 million from the
Group's 18.9% shareholding in Kathmandu Holdings Limited. Mr Duke said, "As
the largest single shareholder, Briscoe's Board remains an interested
observer of Kathmandu's performance.

Group Chair Dame Rosanne Meo said, "This year's results continue to show that
customers recognise and support a quality value proposition based around
product, price and service.

"On behalf of the Board, I would like to acknowledge the great work done by
all staff to maintain Briscoe Group's status as New Zealand's top homeware
and sporting goods retailer."

Dame Rosanne announced that the directors have resolved to pay a final
dividend of 12.00 cents per share (cps). The dividend is fully imputed and,
when added to the interim dividend of 8.00 cps, brings the total dividend for
the year to 20.00 cps, an increase of 5.26% over last year's total dividend
of 19.00 cps.

The final dividend will be paid on 29 March 2019. The share register will
close to determine entitlements to the dividend at 5pm on 26 March 2019.

Tuesday 12 March 2019

Contact for enquiries:

Rod Duke
Group Managing Director
Tel: (09) 8153737
End CA:00331808 For:BGP Type:FLLYR Time:2019-03-12 10:40:23

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