23 Apr 2010

Kirkcaldie and Stains boosts half-year profit

3:04 pm on 23 April 2010

Kirkcaldie & Stains has boosted its half year profit, but says conditions in the retail market remain difficult.

The Wellington company made $725,000 in the six months to February, up 50% on the same period last year.

Profit in its retail division rose 20%, to $716,000 as Kirks cut stock levels and had fewer markdowns.

But less stock meant fewer purchases in the company's annual sale in February and retail revenue fell 5% to almost $20 million.

The company says retail sales remain subdued as consumers remain cautious about the economy. It expects this year to remain difficult, as consumers have become accustomed to sale prices.

The company's property arm, which owns the Harbour City complex, boosted its pre-tax profit by 73% to $393,000, largely due to cheaper interest costs.

Kirks will pay an interim dividend of 3 cents per share.