Compared to some of the other companies reporting yesterday, such as Boral (BLD), Flight Centre (FLT) and Ramsay Healthcare (RHC), Fantastic Holdings (FAN) is a tiddler, and yet it produced a result that few companies can match this reporting season.
Fantastic more than doubled its full year net profit after sales soared to record levels as the company rode the home building and house price booms.
Net profit soared to $13.2 million in the year to June 30 from $5.859 million in 2013-14.
And revenues rose 11% to an all-time high of $496.9 million, with like-for-like sales up a very strong 12.2%.
Earnings before interest, tax, depreciation and amortisation were up 30% to $26.1 million.
The news saw shares in Fantastic up 21 cents, or 10% to $2.30.
FAN 1Y – Fantastic rides the building boom
Final dividend is 5 cents a share, lifting the total payout for the year to 15 cents a share, including a 4 cents a share special payment. That’s up sharply from the 6 cents a share paid for 2013-14.
Managing director Stephen Heath said the solid sales performance continued into July with like-for-like sales up 12.8%.
The company spent heavily on marketing and staff, particularly in its Fantastic and Plush stores to recover from last year’s weak sales performance.
But he warned the falling Australian dollar could slow the sales drive.
"The continuing depreciation of the Australian dollar will partly offset some of the improvements being made," he said.
"We will continue to focus on our product offer, customer service and employee engagement to increase shareholder value."
The group is set to limit foreign currency exposure by selectively raising prices, pushing down costs and developing new and existing products.
The company sold its furniture brand Dare Gallery business and Dandenong property during the year which helped boost the company’s cash holdings to $36.7 million.
