Nick Scali Limited
Appendix 4D
Half-Year Report
1. Company details | |||||||||
Name of entity: | Nick Scali Limited | ||||||||
only | 82 000 403 896 | ||||||||
ABN: | |||||||||
Reporting period: | For the half-year ended 31 December 2021 | ||||||||
Previous period: | For the half-year ended 31 December 2020 | ||||||||
2. Results for announcement to the market | |||||||||
use | $'000 | ||||||||
up | 5.4% | to | 180,323 | ||||||
R venues from ordinary activities | |||||||||
Profit from ordinary activities after tax attributable to the owners of | |||||||||
Nick Scali Limited | down | 17.4% | to | 33,550 | |||||
Profit for the half-year attributable to the owners of Nick Scali Limited | down | 17.4% | to | 33,550 | |||||
Dividends | |||||||||
personalInterest expense | Franked | ||||||||
Amount per | amount per | ||||||||
3,941 | 3,281 | ||||||||
security | security | ||||||||
Cents | Percentage | ||||||||
Fi al dividend for the year ended 30 June 2021 paid on 25 October 2021 | 25.0 | 100.0 | |||||||
On 3 February 2022 the directors declared a fully franked interim dividend of 35.0 cents per ordinary share with a record | |||||||||
date of 7 March 2022 to be paid on 28 March 2022. | |||||||||
Comments | |||||||||
The profit for the consolidated entity after providing for income tax | amounted to | $33,550,000 (31 December 2020: | |||||||
$40,619,000). | |||||||||
31 Dec 2021 | 31 Dec 2020 | ||||||||
$'000 | $'000 | ||||||||
Profit after income tax expense | 33,550 | 40,619 | |||||||
Interest income | (68) | (244) | |||||||
Income tax expense | 14,795 | 17,172 | |||||||
For | |||||||||
52,218 | 60,828 | ||||||||
Ea nings Before Interest and Tax (EBIT) | |||||||||
Depreciation and amortisation expense | 17,905 | 15,454 | |||||||
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) | 70,123 | 76,282 | |||||||
3. Net tangible assets | |||||||||
Reporting | Previous | ||||||||
period | period | ||||||||
Cents | Cents | ||||||||
Net tangible assets per ordinary security | 4.53 | 118.36 | |||||||
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Nick Scali Limited
Appendix 4E
Preliminary final report
4. Entities over which control has been gained or lost during the period
onlyDuring the period, Nick Scali Limited acquired Plush-Think Sofas Pty Ltd for a total consideration of $108,383,000. The acquisition was funded through a combination of new debt facilities and existing cash on hand.
For usepersonal
onlyNick Scali Limited
ABN 82 000 403 896
useHalf-Year Report - 31 December 2021 personalFor
Nick Scali Limited
Contents
31 December 2021
Contents
Directors Report
Auditor's Independence Declaration onlyConsolidated statement of comprehensive income
Consolidated statement of financial position Consolidated statement of changes in equity Co solidated statement of cash flows Notes to the financial statements Directors' declaration
Independent auditor's report to the members of Nick Scali Limited
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Nick Scali Limited
Directors Report
31 December 2021
The Company's directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Nick Scali Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2021.
onlyDirectors
The names and details of the Company's directors (referred to hereafter as the 'Board') in office at any time during the period until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.
John Ingram
Stephen Goddard
William Koeck
Car le Molyneux
Anthony Scali
usePrincipal activities
The principal activities of the Group during the half-year were the sourcing and retailing of household furniture and related accessories. No significant change in the nature of these activities occurred during the half-year.
Dividends
D ring the interim period a final franked dividend for the year ended 30 June 2021 of 25.0 cents per fully paid ordinary share was paid. Since the end of the interim period the directors have declared a fully franked interim dividend for the year ending 30 June 2022 of 35.0 cents per fully paid ordinary share. The interim dividend will be paid out of retained profits at 31 December 2021, on 28 March 2022.
Operating and financial review
Acquisition of Plush-Think Sofas Pty Ltd
On 1 November 2021 the Company acquired Plush-Think Sofas Pty Ltd ('Plush') from Greenlit Brands Household Goods Pty Ltd for a consideration of $108,383,000. The acquisition group was funded through a combination of new debt facilities and existing cash reserves. The Group expects the acquisition to enable it to reach a wider customer demographic.
Group operating results | |||
31 Dec 2021 | 31 Dec 2020 | Change | |
$'000 | $'000 | % | |
R venue | 180,323 | 171,081 | +5.4% |
N t profit after tax | 33,550 | 40,619 | -17.4% |
Earnings per share ('EPS' cents) | 41.4 | 50.1 | -17.4% |
Dividend per share (cents) | 35.0 | 40.0 | -12.5% |
Net cash flow | (46,291) | 24,611 | -288.1% |
personal |
Despite revenue growing by 5.4%, to $180,323,000, net profit after tax of $33,550,000 for the half-year ended 31 December For2021 was down 17.4% on the prior comparative period.
The decline in profitability was due to (a) a reduction of 80 basis points in the gross margin from 64.0% to 63.2%; (b) one- ff transaction costs of $2,914,000 incurred in relation to the acquisition of Plush; (c) the timing of the receipt of the
Jobkeeper wage subsidy in the prior comparative period; and (d) the relatively higher cost base of the Plush business. Operating expenses within the continuing business were tightly managed across all areas of the business, with no material increase in underlying operating costs.
Although operating cashflows remained positive during the period, the Group had a net cash outflow during the period due to the acquisition of Plush.
Showroom network
During the half-year, the Group opened a new Nick Scali Furniture showroom in Hastings, New Zealand, whilst the acquisition of Plush-Think Sofas Pty Limited added a further 45 showrooms bringing the combined showroom network to 108 (103 in Australia and 5 in New Zealand).
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Nick Scali Limited published this content on 02 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 February 2022 22:07:04 UTC.