Ignore the halving of net profit at the fashionwear group, Noni B and focus on the higher final dividend as a guide to how the company performed in 2018-19 and says it will go in the current 2019-20 financial year.
The company bought five fashion chains (Rivers, Millers, Katies, Crossroads, and Autograph) from Specialty Fashion Group in July 2018 and the year to June reflects most of that contribution, which was significant.
Noni B Group said its net profit for the 12 months to June 30 totalled $8.2 million, down from $17.3 million. The company said the after-tax figure includes $9.1 million of restructuring costs before tax as well as $10.6 m million of additional depreciation charges relating to the acquired brands.
Noni B said its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 22% to $45.5 million and it expected EBITDA to reach $75 million in the current 2020 financial year.
Revenue for the period grew to $881.9 million from $372.4 million.
The group already owned stores under the Noni B name as well as the brands W.Lane, Rockmans, and Beme.
“We are excited about the potential to be unlocked through greater analysis of our group’s data, store expansion and online strategies,” managing director Scott Evans said.
“At a time of considerable change within the business and an uncertain economic climate globally and domestically is a significant achievement. When we announced the acquisition of the Specialty brands, we conservatively expected them to break-even on an EBITDA basis in FY2019, returning to profit in FY2020.
“We achieved anticipated synergies and merger benefits ahead of schedule and identified additional efficiencies, resulting in the five brands, collectively, making a positive earnings contribution for the year,“ Mr. Evans said.
Meanwhile the former Specialty Fashion Group, which now trades as City Chic Collective in November 2018, also reported its full-year results yesterday
The plus-size women’s fashion retailer, which retains ownership of 104 stores across Australia and New Zealand, said net profit totalled $16 million against a loss of $9.3 million the year before.
Revenue fell 80% to $149.2 million from $752 million in 2017-18 because of the sale of those five chains to Noni B.
City Chic said it planned to open another 20 shops in Australia and New Zealand over the next two years and expand its
business in the northern hemisphere, where it sells its products at department stores and online.
City Chic declared a fully franked final dividend of 1.5 cents. That was after an interim of 2.5 cents a share paid in March and a special dividend, also 2.5 cents.
Noni B shares eased a cent to $2.59 and City Chic Collective shares were up 11.1% to $2.
