CASHFLOW
The Group's cash flow continues to be strong and was a positive $46.0 million (2004: $40.4 million) including the internal funding of the acquisition of HMV. Operating cash flow for the half-year was a positive $55.8 million (2004: $50.8 million). This reflects the improved inventory management processes and systems implemented as previously announced.
DIVIDENDS
Consistent with the Group's dividend policy, directors have declared an increased interim fully franked dividend of 8.5 cents per share (2004: 8.0 cents per share), an increase of 6.3 %. This is payable on 23 March 2006. The record date for determining dividend entitlements is 16 March 2006.
Directors have suspended the Dividend Reinvestment Plan.
BRAZIN'S HALF YEAR IN REVIEW
The key drivers behind Brazin's first half result are:
- Group sales from continuing operations grew by 21.4 percent including the newly acquired HMV business, but comparative sales down 6 percent on LY impacted by aggressive price competition in a tight discretionary spending environment.
- An excellent result from the 47 percent owned diva chain. The profits are equity accounted, adding $7.4 million to group profit. diva now has 106 stores (originally 70 stores at the time of acquisition).
- The acquisition of HMV, increased our entertainment store portfolio by 32 stores.
- Myer Virgin performed satisfactorily with +11 percent comp increase for the half
- Continued focus on margins through:
marketing@alchempro.com
