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.
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