Record half-year profit for furniture seller Nick Scali sees shares hit four-month high
Shares in furniture retailer Nick Scali hit their highest point since mid-October this morning as it posted a record half-year profit.
Nick Scali (ASX:NCK) imports its goods from overseas and then sells them throughout its 55 stores in Australia and across the Tasman.
It announced a $25.4 million profit for the 2019 first half, up 8 per cent on the previous year, which pushed the shares up 11 per cent to $5.75. Revenue was boosted by 10 per cent to $141.1 million.
It declined, however, to provide guidance for FY19, due to “volatility in recent sales orders and other external factors causing uncertainty”.
Four new Nick Scali stores opened during the first half, three in Queensland and one in New Zealand. It is hoping to open a further two before the end of June, with long-term hopes of 80 stores.
It is also paying a 25cps dividend, due March 27, up 56 per cent on last year.
Anthony Scali, managing director, said that was based on positive cashflow and strong balance sheet, and he hoped the company would remain on track for positive FY19 results.
“By following our store rollout strategy, our team has delivered growth in top line sales and a corresponding record profit in a difficult retail environment,” he said.
“The result demonstrates that even during periods of low, flat or marginally negative same store sales growth, our company is geared to deliver profit growth.”