Nick Scali Limited (ASX: NCK) - Share price Soared on Declaring $41 million profit

  • Aug 16, 2018 AEST
  • Team Kalkine
Nick Scali Limited (ASX: NCK) - Share price Soared on Declaring $41 million profit

NCK stock surged 13% to $6.78 on August 16, 2018 after the company posted profit of $41.0 million for the year ending 30 June 2018.

Furniture retailer Nick Scali Limited today announced its strong financial and operational result for fiscal year 2018, reporting a record Net Profit After Tax of $41.0 million, up 10.1% attributable to 7.7% growth in sales revenue to $250.8 million. This sales increase of $17.9 million is derived primarily from the influence of new stores sales as like-for-like store sales was stagnant during the full year.

Earnings rose 11.6% to $59.0 million in comparison to $52.9 million EBIT in previous corresponding year. Subsequently, the company posted basic earnings per share of 50.6 cents reflecting 10.1% growth which is extremely lower than the earnings growth of 42.4% and 53.1% seen in FY17 and FY16, respectively. Gross margins strengthened by 20 bps to 62.7%, driven by volumes growth and supplier consolidation success.

ASX listed furniture retailer kicked off its first store in New Zealand, in Auckland, followed by 5 more new Nick Scali Furniture stores across Australia in FY18. However, the group, operating two brands Nick Scali Furniture and Sofas2Go, decided to discontinue its Sofas2Go brand leading to closure or rebranding of five stores in the past one year.

Borrowings increased during the year at the back of Auburn store acquisition. Net assets were $83.7 million as at 30 June 2018, up $13.3 million on last year.

 The board has declared fully franked dividend of 24 cents per security, bringing the total dividend to 40 cents for the year ending 30 June 2018.

With the objective of having 60 stores by December 2018, the group has confirmed the launch of six new stores in 2019, adding up to the existing 55 stores across Australia and New Zealand.

Following to the announcement of significant contribution from new stores, lower costs, and higher dividend, NCK shares price mounted on ASX.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK