3 months trading update to 30 September 2011
Michael Hill International Limited
3 months trading update to 30 September 2011
Note that these figures represent 2 months accounting adjusted sales results plus September preliminary sales figures prior to final accounting adjustments and are unaudited.
Revenue from sale of goods for quarter to 30 September 2011:
The following figures are in NZ Dollars Last Year This Year % Var
Australia same stores 63,622,361 64,617,301 1.6%
NZ same stores 20,286,855 20,554,132 1.3%
Canada same stores 8,473,722 8,181,399 (3.4)%
United States same stores 1,928,674 2,282,912 18.4%
Total same stores $94,311,612 $95,635,744 1.4%
Australia all stores 64,132,393 68,756,288 7.2%
NZ all stores 20,719,725 20,933,709 1.0%
Canada all stores 8,482,144 9,439,353 11.3%
United States all stores 1,895,225 2,282,912 20.5%
Total all stores $95,229,487 $101,412,262 6.5%
Exchange rates used for the 3 months:
Australia 0.80 0.79
Canada 0.77 0.81
USA 0.73 0.83
The following figures are in local currency Last Year This Year % Var
Australia same stores AUD 51,205,944 51,221,693 0.0%
NZ same stores NZD 20,286,855 20,554,132 1.3%
Canada same stores CAD 6,492,951 6,661,094 2.6%
Unites States same stores USD 1,410,333 1,904,425 35.0%
Australia all stores AUD 51,616,439 54,505,303 5.6%
NZ all stores NZD 20,719,725 20,933,709 1.0%
Canada all stores CAD 6,499,680 7,685,549 18.2%
United States all stores USD 1,385,613 1,904,425 37.4%
Sales have been challenging in our established 3 markets during the first quarter, however the US business has experienced some strong growth over the corresponding period last year. Overall the board is pleased with the sales results especially given they were on the back of strong growth in the first quarter of last year.
The second quarter is the most critical trading period for the group so the next 3 months trade will largely determine the result for the 2011-12 year.
The figures stated above do not include revenue collected from the sale of Professional Care Plans (PCP), an initiative launched in October 2010. The revenue from these plans is carried on the balance sheet as deferred revenue and will be brought to income over the life of the plans (3 Year and Life Time).
The PCP programme has the potential to contribute materially to income. Initially, the rate at which this revenue is brought to income will be largely based on our research of similar programmes in North America. As we gain a better understanding of the Company’s actual experience, we will progressively refine the rate at which this income is recognised.
Because the PCP programme has been in place for less than a year the company is not in a position presently to accurately estimate the amount likely to be brought to income for the period covered by this trading update. The amount that will be brought to income at the half year and full year will be estimated at those times, and will be based on that overseas research and the data collected over the period in relation to use of the plans by our customers.
The following figures are in NZ Dollars
Last Year This Year % Var
PCP Revenue collected for the September quarter 0 5,412,758 NA
Sir Michael Hill 11 October 2011
Chairman
All enquiries should be made to Mike Parsell CEO phone +61 403 246655