Super Retail Group’s share hit year highs yesterday, soaring 14% in early trading after beating the markets’ forecasts on full-year profit and revealing a strong trading update for the new financial year.
The shares hit $10.44 in early trading and closed lower at $9.82, still up a solid 8.2% for the day.
The company, which owns Supercheap Auto, Rebel Sport, BCF, and which recently bought NZ outdoor chain, Macpac, reported a 7% rise in underlying net profit of $145.3 million for the 2018 financial year, $5 million ahead of analyst forecasts.
Statutory profit was just over $128 million. Profit in 2016-17 was just over $101 million.
The result was boosted by earnings of $7.8 million from New Zealand outdoor apparel and equipment retailer Macpac, which it acquired for $135 million in February.
The group posted total sales growth of 4.2% to $2.57 billion.
For the first six weeks of 2018-19 year directors said comparable sales growth (the best measure for retail sales performance) were up across divisions with Supercheap Auto seeing a 5% rise, Rebel Sports and BCF up around 3% each and Macpac up about 7%.
The company is paying a final dividend of 27.5 cents, making a full year dividend of 49.0 cents, up 5.4% from a year earlier.
Buried in its results was a provision of $7.9 million in anticipation of back payments to workers who were underpaid since 2010.
The group has admitted to underpaying workers by almost $8 million after incorrectly calculating overtime pay and allowances.
The underpayments, uncovered by an internal review, relate to workers who were either seconded to or worked permanently in its "set-up" team, which fits-out or refurbishes the group’s more than 600 stores.
Super Retail Group CEO Peter Birtles said in yesterday’s statement:
“We are pleased to report a record result for the Company in a year in which we have also made significant progress in delivering on the three core elements of our strategy and we have strengthened our portfolio of businesses in high engagement categories with the merger of the Rebel and Amart Sports businesses and the acquisition of Macpac and merger with Rays.”
