Briscoe Group Limited Analysis

Overview

The company's beginnings date from 1862 when the first Briscoes warehouse and store was opened in Dunedin, by William Briscoe & Son. Australian and NZ operations were purchased by Merbank Corporation of Australia in 1973, and following extensive rationalisation, by Hagemeyer in 1977. Following several years of losses, the business was acquired by CEO Rod Duke, in 1990. Stock exchange listing followed a public issue of 40m shares at $1 each in November 2001.

By 2008, Briscoe Group Limited's retailing interests totaled 57 Homeware Stores and 32 Sporting Goods Stores.

Performance

The following information was extracted from Briscoe Group Limited's full year, released on 12 March 2025:

Full Year Review

Highlights for the full year ended 26 January 2025:

• Total sales $791.5 million, 99.94% of last year’s record sales
• Gross profit margin 40.37%
• Online sales as mix of total Group sales 19.69%, (LY 18.72%)

-Total costs only 1.11% increase on last year

• Total inventory $5.2 million below last year
• $58.2 million capital expenditure made during the period
• Strategic initiatives remain on track and to budget
• Net profit after tax (NPAT1.) $68.0 million

Board Chair, Dame Rosanne Meo said, “In this marketplace to be within 0.06% of last year’s record sales, to manage costs to be only 1.11% higher than the previous year and to reduce inventory by a further $5 million is frankly, a remarkable performance.”

The current year’s result includes a tax adjustment of $7.4 million that the Group is required to book as a result of tax changes announced by the government in early 2024. This deferred tax liability adjustment is a one-off, non-cash accounting entry which has no impact on Briscoe Group’s underlying profitability or dividend policy. Excluding this adjustment NPAT1. for the year ended 26 January 2025 was $68.01 million. After including the tax adjustment, the directors of Briscoe Group report a net profit after tax of $60.6 million.