Briscoe : Interim Report 31 July 2022

RETAIL

IS OUR

WORLD.

Interim Report

For the period ended 31 July 2022

The quality and appeal of our product offering, the strength of our trading platform and the strong performance of our people will continue to stand the Group in good stead.

Contents

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Directors' Report Supply Chain Customer Experience Directors' Approval

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Balance Sheet

Consolidated Statement of Cash Flows

Consolidated Statement of Changes in Equity

Notes to the Financial Statements

Independent Auditor's Report Directory

Notes

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Briscoe Group Limited Interim Report 2022

Directors' Report

Directors' Report

The Group produced another excellent performance for this first-half, as we continued to navigate the disruptions arising from Covid-19 and a choppy retail environment driven by economic uncertainty.

Briscoe Group Limited Interim Report 2022

Directors' Report

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This latest half-year period was notable for the early and significant impact on shopping centre foot traffic arising from the outbreak of the Omicron variant of Covid-19. As occurred earlier in the pandemic, the impact on store trading was largely offset by growth on our online platform. It is clear that the opportunity to move seamlessly between in-store, online and click- and-collect shopping is valued highly by our customers, and that has been a key factor in the Group's ability to maintain and even improve performance during these years.

The Group increased sales for the half-year, while net profit after tax (NPAT) was narrowly off the record level set in the previous first half. For perspective, NPAT for this latest period was 61% higher than that for the most recent comparable period pre-Covid-19 - the July 2019 half-year.

Growth at that level over such a challenging period testifies to the performance of our management team and all colleagues across our bricks-and-mortar network, our online platform and our supply chain.

It also reflects a significant and positive evolution in the way the Company operates and the quality of our offering to customers. This evolution is driven by our ongoing strategic change programme, which started before the onset of Covid-19 and is now providing benefits that reflect clearly in our trading results, while also setting foundations for continued growth.

Economic conditions and outlook deteriorated during the half-year, with family budgets being squeezed by cost-of-living increases and pressure on house values, along with a second Omicron wave. Like most businesses, Briscoe Group has also faced internal pressures including staff shortages, cost increases and stresses on the supply chain.

It would be easy to be daunted by the prospect of these continuing challenges, but we are not. We are confident that the quality and appeal of our product offering, the strength of our trading platform and the strong performance of our people will continue to stand the Group in good stead.

Our Impressive People

Our teams continue to adjust successfully to the evolving demands of the current operating environment.

There is a range of programmes in place for education and training, supporting performance and personal development. There are also programmes that provide support in regard to issues such as staff shortages arising from illness, shoplifting, customer stress and social tensions.

The Group has taken steps to ensure the safety and security of teams at every level. Their health and wellbeing remains our highest priority. We are very mindful of the impact on our people of the current public health situation, as well as from declining economic factors. We continue to provide support in the form of paid leave for Covid-19-related absences over-and-above existing entitlements.

We were able, once again, to maintain all existing jobs and provide a significant increase in incomes during the half-year. Wage rates for our in-store,hourly-paid team were increased by 7.0% from April 2022. The employment market remains extremely competitive

• more so given the effect of heightened Covid-19 case numbers since the Omicron variant became established in New Zealand early in the half-year.

Outstanding Trading Performance

Results for the first half reflected outstanding performance considering the significant headwinds faced by the retail sector. Sales increased in both the homeware and sporting goods categories, while margins were solid in relation to historically high levels despite cost and other pressures in the supply chain.

Continuing progress on strategic initiatives was also a noteworthy factor in the results, with benefits from supply chain projects contributing to sales, gross profit and NPAT.