Womenswear retailer Noni B has posted almost 70 per cent rise in annual profit, and says it will work to expand its market.
Noni B recorded net profit for the year to June 30 of $3.867 million, up 68.42 per cent on 2008/09 and slightly above its forecast range of $3.4-3.8 million.
Sales were down 0.7 per cent at $117.37 million, however, while earnings before interest, tax depreciation and amortisation (EBITDA) were up 24.1 per cent at $9.485 millon.
Earnings before interest and tax (EBIT) were 62.3 per cent higher at $5.523 million.
Noni B declared a final dividend of three cents per share fully franked, bringing total dividend for the year to nine cents fully franked.
This follows no final dividend in 2008/09.
"The increased profitability reflects our focus on controlling margins and costs, while maintaining the loyalty of our customers through offering personal service and fashion that appeals to them," joint managing director David Kindl said.
"We have succeeded in increasing our EBITDA margin to 8.1 per cent from 6.5 per cent in FY2009, helped by avoiding the more aggressive discounting that has taken place in our sector," he said.
Comparative store sales in the ACT, Western Australia and the Northern Territory were higher.
Total comparative store sales fell by just 0.5 per cent, despite the end of the government stimulus packages that boosted demand in FY2009.
Noni B opened five stores during the year and closed six, including three clearance stores, and at the end of the financial year the company had 213 stores covering all states and territories.
At least four new stores will be opened before Christmas 2010, including two CBD stores, one each in Perth and Sydney.
Mr Kindl said Noni B would "continue to strengthen our relationships with our customers, provide fashions that they desire, control inventory and costs, and expand awareness of the Noni B and Liz Jordan labels among a wider demographic.
"While we remain cautious about demand during the coming months, the company is in a stronger position than a year ago and is well placed to take advantage of an increase in consumer confidence" he said.
AAP
