In yesterday’s bloodbath on the ASX few stocks went against the trend, but one was Premier Investments (PMV) whose shares bounced.
The company, which reported a very solid 2014-15 result on Friday, saw its shares rise more than 9.5%, or $1, to $12.92. That was after a 1.5% dip to $11.97 on Friday in the wake of the full year results and higher dividend were announced.
A number of brokers’ analysts upgraded their views on the company in the wake of the full year results and upbeat commentary from management about offshore expansion plans, especially in Britain.
Also helping was the strong suggestion of possible capital management measures after chairman Solomon Lew said the group (which has $282 million cash and $208 million of franking credits) would consider further capital management initiatives and did not rule out acquisitions.
Naturally the tip from analysts was Myer, the department store group in which Mr Lew has dabbled in off and on for years.
PMV 1Y – Upbeat Premier beats expectations
Premier reported a 20.7% jump in net profit to $88.1 million for the 12 months to the end of July.
Group sales rose 6.2% to $961.9 million, as double-digit growth at chains Smiggle and Peter Alexander offset subdued growth at the established brands Just Jeans, Dotti, Portmans and Jacqui E.
Comparable store sales rose a solid 3.4% across the group in the July half year, up sharply from the modest 1.1% in the first half (which is a bigger six months for retailer, as it covers the Christmas period). That combined to produce a 2.2% rise in same store sales for the full financial year.
Earnings before interest and tax jumped 13.9% to $105.7 million. Premier also booked a $12.8 million profit from its 27% stake in appliance maker Breville.
The company expects sales are set to top the $1 billion level this year and net profit to exceed $100 million for the first time as the retailer presses ahead with the global expansion plans for its fast-growing Smiggle stationery brand and builds online businesses in Australia and overseas.
Premier said it opened almost two dozen Smiggle stores last year, taking total stores to 188, and has unveiled plans to open at least 50 a year over the next few years, including 40 each year in Britain.
Premier increased its final dividend from 20 cents a share to 21 cents, taking the full-year payout, including a special dividend in the first half, to 51 cents.
