JB HI-FI has announced that long-serving chief Richard Uechtritz will soon retire.
The highly regarded Mr Uechtritz, who led a private equity consortium to seize control of the retailer in 2000 and then steered its successful public float in 2004, said he would step down in July or August and would be replaced by his close colleague and chief operating officer, Terry Smart.
News of his exit triggered a near-7 per cent dive in JB Hi-Fi shares despite the electronics retailer also unveiling yesterday a record interim profit of $76 million, up 28.8 per cent, from $1.55 billion in sales.
Mr Smart will inherit a retailer that is tipping full-year sales of $2.8 billion for 2009-10 after confirming earnings guidance of a net profit in the range of $117 million to $120 million, or a 24 per cent to 27 per cent increase on the previous year.
Mr Uechtritz attracted a large and loyal shareholder base after his transformation of JB Hi-Fi into a thriving business and will reward investors one last time upon his departure with a greatly increased interim dividend of 33¢ a share, up 120 per cent on last year's payout.
Mr Uechtritz said the dividend, to be paid on March 5 and at a payout ratio of 60 per cent against a previous target of 50 per cent, reflected the intention to focus on an almost doubling of JB store numbers to 210 over the next six years rather than growing via acquisitions.
''We have got nothing on our radar - otherwise we would be keeping the dollars,'' Mr Uechtritz said.
''In Australia there is nothing besides the large established players that we feel would complement JB in the electrical industries.''
The retailer recorded comparable-store sales growth for December of 6.5 per cent when many leading retailers, such as Myer, suffered a sales contraction.
''We continue to grow our market share as recently opened stores mature,'' Mr Uechtritz said.
JB Hi-Fi opened 15 stores in the half and should open another seven in the second half of 2009-10, taking total new stores for the year to 22 - the most it has opened in any year.
Following Mr Uechtritz's retirement and a six-month period of absence, he will rejoin the JB Hi-Fi board as a non-executive director early next year.
JB Hi-Fi shares ended down $1.03, or 5.1 per cent, at $19.07.
