BGR - Briscoe Group Ltd

[Bongo666]

Summary
Charts
Dividends
News
Announcements
Price History
Related Securities

Website

www.briscoegroup.co.nz

[Bongo666]

A nice sales result out today (See attachment below) Sales slightly down but all important margins are up. Good going, that Duke is a master retailer!


Seems the lift in margins for Briscoe Group led an upwards tick in New Zealand retailers today. Investors must remember that not all listed retailers are created equal

BGR - 1st Quarter Sales to 26 April 2009.pdf

[Bongo666]

So Briscoe Group thinks the time is right to buy a distressed retailer (see attachment below) but CEO and founder Rod Duke has telegraphed this many times before and still no movement. Meanwhile his cash piles up.

It is clearly different this time. Which retailers could be his target?

Well, you don't have to be Einstein to figure that out, just have a look at your local mall and see which retailers are selling (at a profit) and which are not

Briscoes goes shopping for rival retailers.docx

[Bongo666]

So Briscoe Group thinks the time is right to buy a distressed retailer (see attachment below) but CEO and founder Rod Duke has telegraphed this many times before and still no movement. Meanwhile his cash piles up.

It is clearly different this time. Which retailers could be his target?

Well, you dont have to be Einstein to figure that out, just have a look at your local mall and see which retailers are selling (at a profit) and which are not

Here is a really good question, if Rod is looking at buying cheap assets how come he hasn't been buying back stock in Briscoes?

[Bongo666]

An expectation in the doubling of HY profit for Briscoes is encouraging during a recession. The higher margins are a really good sign and an overall increase in sales(see attachment below) was not really expected and contrary to other retailers.

Retailer Briscoe Group expects to virtually double its profits in the latest half year.

In releasing six-monthly sales figures for the period to July 26 today, Briscoe managing director Rod Duke said the company expected after tax earnings for the period of at least $6 million compared with $3.1 million at the same time last year.

Last year's half-year earnings were hit hard by the recession and downturn in consumer spending, with profits having tumbled from $10.5 million in the previous comparable period. Briscoe operates the Briscoes Homeware, Rebel Sport and Living & Giving stores.

Duke said today that in the latest trading period the gross profit margins had been higher than at the same time a year ago.

Stock levels were in great shape and the benefits of operating efficiencies were coming through.

"These efficiencies have been generated from the cost minimisation initiatives implemented progressively since early last year as well as from the changes we have made this year to the structure of our store management," Duke said.

"We are pleased with the result for this second quarter and the resulting half year performance which has been achieved in a retail market that continues to be highly competitive and unpredictable; particularly for our specialty homeware stores."

Total sales for the half year were $185.3 million, up 1.83 on the $182 million at the same time last year.

The Group's homeware segment decreased sales very marginally during this period but the sporting goods segment increased sales by 6.2 percent.

On the comparing-apples-with-apples, same store basis the group's sales were 0.9 percent ahead of the same period last year.

On a same store basis homeware sales decreased by 1.4 percent, while sporting goods sales increased by 6.2 percent over the first half of last year.

For the second quarter period group sales were $95.1 million, up 3.7 percent on the same quarter of last year.

BGR - 2nd Quarter Sales to 26 July 2009.pdf

[Bongo666]

Nice rise in sales for Briscoe Group for the most recent quarter. An 8% spike. Interesting to see how margins are going though or are they just getting rid of old crap...

[Bongo666]

2nd Quarter Sales Release to 1 August 2010

The directors of Briscoe Group Limited announce unaudited sales for the half year to 1 August 2010 of $190.1 million, an increase of 2.61% on the $185.3 million reported for the first six months of last year. The Group’s homeware segment increased sales by 1.73% during this period and the sporting goods segment by 4.47%.

On a same store basis the Group’s sales for the half year ended 1 August 2010 were 2.49% ahead of the same period last year.

On a same store basis homeware sales increased by 1.56%, while sporting goods sales increased by 4.47% over the first half of last year.

For the second quarter period, being the thirteen weeks ended 1 August 2010, Group sales were $93.3 million, being 1.93% below the $95.1 million reported for the same quarter of last year.

Homeware sales for the quarter decreased by 3.64% to $64.9 million while sporting goods sales increased by 2.22% to $28.4 million. On a same store basis, homeware sales decreased by 3.69% for the quarter while sporting goods sales were 2.22% ahead of last year.

On a same store basis the Group’s sales for the quarter were 1.96% below the second quarter for last year.

Group Managing Director, Rod Duke said, “Pressure on sales intensified during this second quarter and gross margin %, as for the first quarter, is slightly below that achieved for the second quarter last year. This reflects the impact of the unusually mild temperatures experienced in April and May as the winter season commenced and the continued competitiveness and tightening across the retail industry in general.

”Despite the tough operating conditions, Group EBIT has tracked ahead of last year for both quarters and we expect our results for the half year to show Group EBIT ahead of last year by around 30%. We’re pleased with this interim result given the current retail environment. Sales and gross profit will be up on last year and costs have been well managed during this first six months. Gross margin % will be slightly lower than for last year.

”After taking to account a tax adjustment of approximately $2.6 million that we are required to book under New Zealand Equivalent to International Accounting Standard 12 as a result of the recent tax changes announced by the government, the Group’s Net Profit After Tax for the half year is anticipated to be similar to the $6.5 million reported for the same period last year.”

Friday 6 August 2010

Contact for enquiries:
Rod Duke
Group Managing Director
Tel: (09) 815 3737

[Share Investor]

3rd Quarter Sales Release to 31 October 2010

The directors of Briscoe Group Limited today announced unaudited sales for the thirteen week period to 31 October 2010 of $89.8 million, an increase of 6.51% on the $84.3 million reported for the third quarter of last year.

On a same store basis the Group’s sales for the third quarter were 6.11% ahead of the same period last year.

Homeware sales increased by 6.16% to $61.5 million while sporting goods sales increased by 7.27% to $28.2 million for the quarter. On a same store basis, homeware sales increased by 5.58%, while sporting goods sales increased by 7.27%.

Total Group store numbers decreased to 88 from 90 during the quarter with the closure of two Living & Giving stores at Northlands, in Christchurch and Newmarket, following the expiry of the leases for these properties.

The October quarter sales figure takes unaudited Group sales for the year-to-date (i.e. for the period 1 February 2010 to 31 October 2010) to $279.9 million, an increase of 3.83% on the first nine months of last year. Homeware sales increased 3.13% for this period, while sporting goods sales increased 5.33%.

Rod Duke, Group Managing Director, said, “This third quarter certainly started better than it finished. Solid sales and gross profit numbers in August and September were converted into strong increases over last year on the bottom line. Despite September results being impacted by the Christchurch earthquake we saw a significant late rally in sales leading up to the 1 October increase to GST. During October, however, we have experienced further tightening of sales and margin.

”As we begin the crucial final quarter we remain cautiously optimistic in our outlook. The recent cuts to personal tax rates should help boost the potential for increased retail sales however, the extent to which this is offset by increases in fuel, power and general living costs, remains to be seen.

“We remain confident that the Group’s full year tax paid profit (excluding the $2.6 million tax adjustment booked at half year as a result of the recent tax changes to building depreciation) will be ahead of the $21.03 million reported for last year. This will of course be heavily influenced by the strength or otherwise of the retail market over the Christmas period.”

Friday 5 November 2010
Contact for enquiries:

Rod Duke
Group Managing Director
Tel: (09) 8153737

[Share Investor]

9:13am, 2 Feb 2012 | QUARTER

Same stores sales summary:
• 4th Quarter Group +9.14%
• 4th Quarter Homeware +10.71%
• 4th Quarter Sporting goods +5.71%
• Full Year Group +7.99%
• Full Year Homeware +7.35%
• Full Year Sporting goods +9.31%

The directors of Briscoe Group Limited today announced unaudited sales for the thirteen week period to 29 January 2012 of $146.0 million, an increase of 4.70% on the $139.4 million reported for the fourth quarter of last year.

On a same store basis the Group’s sales for the fourth quarter were 9.14% ahead of the same period last year. The same store sales calculation adjusts for:
- the eight Living & Giving stores the Group has closed within the last twelve months,
- the Briscoes Homeware Salisbury Street store in Christchurch, which was demolished earlier this year as a result of damage sustained from the second earthquake on February 22nd and also,
- the Rebel Sport Colombo Street store, which was closed on the 5th January 2012 to enable completion of building repairs also needed to be performed as a result of last year’s earthquakes.

Homeware sales increased by 4.77% to $101.6 million while sporting goods sales increased by 4.55% to $44.4 million for the quarter. On a same store basis, homeware sales increased by 10.71%, while sporting goods increased by 5.71%.

Total Group store numbers decreased to 79 from 80 during the quarter with the closure of the Living & Giving store at Tauranga, following the expiry of the lease for this property.

Managing Director, Rod Duke said, “We are extremely pleased with the overall performance for the final quarter of the year. The market responded very favourably to our marketing initiatives during the lead up to, and throughout the crucial Christmas trading period. While competition remained fierce across most retail sectors, which placed some strain on gross margins, sales for the Group were consistently strong during December and also through January.

“With this strong finish to the financial year we expect to report a full year tax paid Group profit of no less than $27.0 million. This would represent an increase over last year’s $21.61 million reported full year NPAT of at least 25% and around 12% against last year’s $24.10 million NPAT adjusted for the $2.48 million one-off tax adjustment booked by the Group.

The January 2012 quarter sales figure takes unaudited Group sales for the year ended 29 January 2012 to $438.0 million, an increase of 4.47% from the $419.3 million reported for last year. Homeware sales increased 2.70% during this period, while sporting goods sales increased by 8.29%.

On a same store basis the Group’s sales for the twelve months ended 29 January 2012 were 7.99% ahead of the same period last year.

Homeware same store sales increased 7.35% compared with the twelve months of last year, while sporting goods increased by 9.31%.

The directors expect to report the final full year audited result on 9 March 2012.

Thursday 2 February 2012
Contact for enquiries:

Rod Duke
Group Managing Director
Tel: (09) 815 3737
Attachments

[Share Investor]

8:35am, 3 Aug 2012 | QUARTER

Half Year 30 January 2012 – 29 July 2012:
The directors of Briscoe Group Limited announce unaudited sales for the half year to 29 July 2012 of $204.7 million, an increase of 5.48% on the $194.1 million reported for the first six months of last year. The Group’s homeware segment increased sales by 5.49% during this period and the sporting goods segment by 5.46%.

On a same store basis the Group’s sales for the half year ended 29 July 2012 were 6.77% ahead of the same period last year.

On a same store basis, homeware sales increased by 7.90%, while sporting goods sales increased by 4.56% over the first half of last year.

Second Quarter 30 April 2012 – 29 July 2012:
For the second quarter period, being the thirteen weeks ended 29 July 2012, Group sales were $102.2 million, being 4.51% above the $97.8 million reported for the same quarter last year. Homeware sales for the quarter increased by 5.29% to $71.1 million while sporting goods increased by 2.79% to $31.1 million.

On a same store basis the Group’s sales for the second quarter ended 29 July 2012 were 5.97% above the second quarter for last year. The same store sales calculation for the second quarter adjusts for the six Living & Giving stores the Group has closed within the last twelve months. The same store sales calculation differs from that used for the first quarter in that in addition to the adjustment for the closed Living & Giving stores, an adjustment was also made in the first quarter to exclude all Christchurch stores from the calculation due to the level of disruption and lost trading days experienced due to the February 2011 earthquake. This treatment is consistent with the same store sales calculation made last year.

On a same store basis homeware sales increased by 7.42% for the quarter while sporting goods sales were 2.79% ahead of last year.

Commentary:
Group Managing Director, Rod Duke said, “Briscoe Group has continued its positive start to the year with this pleasing second quarter result. A strong sales and margin performance has enabled Group profit to track ahead of last year which is very important in relation to our full year profit given the very strong third quarter result achieved last year on the back of the Rugby World Cup.

“Notwithstanding the continued tough operating conditions, and a significant commitment of resources and expenses to generate new streams of online business levels from our websites, Group EBIT has tracked above last year during this first half and we expect this to be reflected in our results for the half year. Sales and gross profit will be up on last year and costs have been well managed during this first six months.

“While they have been fully functional only since early this year, we are pleased with the sales growth being generated by our two new websites, www.briscoes.co.nz and www.rebelsport.co.nz, and anticipate that our online business will become increasingly important for us.

“The Group’s Net Profit After Tax for the half year is anticipated to be approximately $13 million which would represent a 26% increase over last year’s $10.3 million half year result.”

The Group expects to announce its first half results on 7 September 2012.


Friday 3 August 2012

Contact for enquiries:
Rod Duke
Group Managing Director

[Share Investor]

9:01am, 1 Feb 2013 | QUARTER
Year-to-date: 30 January 2012 - 27 January 2013:<br /> The directors of Briscoe Group Limited announce unaudited sales for the fifty two week period from 30 January 2012 to 27 January 2013 of $452.7 million, an increase of 3.35% on the $438.0 million reported for last year. The Group’s homeware segment increased sales by 4.28% during this period and the sporting goods segment by 1.43%.

On a same store basis the Group’s sales for the twelve month period ended 27 January 2013 were 2.59% ahead of the same period last year.

On a same store basis, homeware sales increased by 3.63%, while sporting goods sales increased by 0.49% compared to last year.

Fourth Quarter 29 October 2012 – 27 January 2013:<br /> For the fourth quarter period, being the thirteen weeks ended 27 January 2013, Group sales were $150.5 million, being 3.07% above the $146.0 million reported for the same quarter last year. For the quarter, homeware sales increased by 2.70% to $104.3 million, while sporting goods sales were $46.2 million, an increase of 3.92% on the $44.4 million achieved by Rebel Sport for the same quarter last year.

On a same store basis the Group’s sales for the fourth quarter ended 27 January 2013 were 0.73% ahead of the fourth quarter for last year. The same store calculation for the fourth quarter adjusts for the new Salisbury Street Briscoes Homeware store reopened by the Group in August, the new Blenheim Rebel Sport store opened during December and also for the two stores closed by the Group within the last 12 months, being the Tauranga Living &amp; Giving store and the Fox Outlet store in Auckland.

On a same store basis homeware sales increased by 0.12% for the quarter and sporting goods sales increased by 2.14% for the same period.

Commentary:<br /> Managing Director, Rod Duke said, “We are reasonably pleased with our sales, margins and overall performance for the final quarter of the year. Competition was fierce across most retail sectors but customers responded favourably to our marketing initiatives, which continually reinforce our unique product quality, range and value combination. Trading was particularly strong immediately prior to and post Christmas, and we were especially pleased with the significant lift in sales achieved by our online stores across all three trading brands for December. We will continue to drive all of our businesses to ensure our customers have the best possible choice of product and that they have a great in-store experience. It’s not sufficient just to offer on price! It is clear that to attract customers it is essential to provide a great value proposition.

“The performance of Rebel Sport is also a highlight for us this year given the extremely high comparative numbers we were up against as a result of the significant boost in business generated by the Rugby World Cup in 2011. For Rebel Sport to post positive same store sales, increased gross profit margin and increased bottom line profit for the year is an achievement we are very proud of.

“We now expect the Group’s reported full year tax paid Group profit to exceed $30.0 million. This would represent an increase of at least 9% over last year’s $27.53 million reported full year NPAT.”

The directors expect to report the final full year audited result on 7 March 2013.

Friday 1 February 2013<br /> Contact for enquiries:

Rod Duke<br /> Group Managing Director<br /> Tel: (09) 8153737

[Share Investor]

2:53pm, 16 May 2013 | ADDRESS
Firstly thank you for joining us today at our 12th Annual Meeting.

Today is our opportunity to present to you, our shareholders, your Directors' Reports on the financial and operational performance of Briscoe Group Limited for the 52 week period ended 27 January 2013. In addition however we want to take this opportunity to provide you with an overview of the Company's operations and the Board's views as to the future trading environment.

The 2012/13 financial year result posted for the year ended 27 January 2013 represented a record profit produced by the Group, a result with which we are particularly pleased given the continuing unpredictable nature of the retailing environment in which we operate. The performance of Rebel Sport deserves particular mention here not only given the strong comparatives we were up against from the Rugby World Cup but also the entrance to the New Zealand market of a new outdoor retailer. For Rebel Sport to deliver positive same store sales as well as significant increases to gross profit margin and bottom-line profit is extremely satisfying and a credit to Rod and his management team.

The result continues the strong profit growth generated by the Group for the previous three years and reflects a range of initiatives implemented during that time including constant focus on inventory management, cost control, people development, promotional planning, operational structure and expansion of our online operations.

The 2012/13 financial year represented a number of important milestones and highlights for Briscoe Group. In November we celebrated 150th anniversary of operations for the Briscoes brand. The celebrations culminated in a special dinner attended by a number of present and past employees as well as many of the Group's loyal suppliers. We are immensely proud of this milestone making Briscoes one of New Zealand's most recognisable, trusted and indeed iconic retailing brands.

Rod will be speaking in some detail about what we consider to be key drivers to the Company's success, but we do recognise the importance of optimising the value proposition offered to customers and the delivery requirement in order to satisfy that demand. We also believe that the degree of specialisation Briscoe Group has in homeware and sporting goods enables us to focus more tightly on the scope of our product offerings and when this is combined with our strong emphasis on the in-store shopping experience, we are able to ensure greater customer satisfaction.

I have mentioned to you before that the drive and demand from our key executives for continuous improvements in all aspects of the business, product, logistics, in-store service, promotions, more sophisticated analytics, the list goes on but the energy is unflagging.

During the previous year we launched fully transactional websites for all three of the Group's brands and during 2012/13 we realised significant lift in sales for these online stores. Our websites are also having a strongly positive impact on in-store sales as an increasing number of customers research online ahead of making purchases. We recognise the importance of having an online presence and believe it demonstrates our commitment to provide highly relevant and contemporary additional sales channels for our brands as well as offering alternative and desirable shopping experiences.

Our first quarter results for the current year 2013/14, released earlier this month, while satisfactory, reinforce the relentless pressure and demands to consistently achieve excellent results. The 'curve ball" we were thrown during this 1st quarter was the long extended summer enjoyed by all New Zealand holiday makers but not so enjoyable for retailers dependent on new season product sales to fuel sales lifts and turnover inventory!

While we are proud of what has been achieved to date, your directors and senior management are far from complacent. There is still much to do, but we believe we have a strong foundation in place from which the Group can develop and prosper.

The Group remains in a strong financial position to weather the on-going volatile economic environment. Indeed with no debt and a strong cash balance it continues to be favourably positioned to take advantage of investment opportunities should they arise as well as maximising organic growth opportunities that we believe would improve shareholder wealth.

The Board is keen to pursue further growth opportunities for the homeware and sporting goods operations and to extend the Group's reach into new geographical areas. Opportunities for further expansion through acquisitions, store rollout or store reconfiguration will continue to be evaluated on the basis of their potential to add value to Briscoe Group and its shareholders.

Financial performance for the 2012-13 Year:

Sales revenue was $452.70 million, compared with $438.04 million previously. On a same-store basis, sales increased for the year by 2.6 percent over 2011-12.

Gross profit increased from $173.10 million to $181.10 million, equating to a gross profit margin of 40.0 percent compared with 39.5 percent for the previous year. Net profit after tax (NPAT) was $30.47 million, compared to the $27.53 for last year, an improvement of 10.7 percent.

These results were for the 52 week period from 30 January 2012 to 27 January 2013.

Inventories were $64.57 million at 27 January 2013, being $2.51 million higher than the $62.06 million reported for last year, due to the increase in inventory holding of product directly imported by the Group as well as the two new stores opened during the year.

Net cash inflows from operating activities were $31.41 million, $10.62million below those of last year, primarily as a result of the higher inventory balances and increased payments to suppliers reflecting increased sales volume and timing of creditor payments at year-end.

Net cash outflows from investing activities were $5.80 million reflecting investment made in store fit-outs and refurbishments during the year.

Dividend:

The directors as you are aware resolved to pay a final dividend of 7.00 cents per share (cps), fully imputed. When added to the interim dividend of 4.00 cps, that brought the total dividend for the year to 11.00 cps, representing 77% of the Group's tax paid earnings (excluding the special dividend payment made in June 2012). During the last four years the Group has paid out 78% of tax paid earnings in normal dividends and 100% when the special dividend is included.

We are always testing our strategies and decisions in terms of "what is best for the company and our shareholders". As well as for operational matters, this process and discipline is central to the assessments we make from time to time about distributions to shareholders by way of regular dividends or special capital distributions, both of which can also be affected by the pursuit of growth opportunities for the Company. We expect to continue with these criteria and balances in the formulation of our strategies and in our decision making.

Executive Share Option Plan:

The Board continues to be of the view that all shareholders benefit from the issue to key senior executives of long-term, appropriately-priced share options that crystallise only on delivery of increased shareholder value. In 2003 the Group established an Executive Share Option Plan. The Board intends to issue up to a further 1,600,000 options in the current 2013-14 financial year. This will result in the total number of share options issued under the scheme since its inception and still exercisable being equivalent to 2.2 percent of the current issued share capital.

The first four tranches of options, issued between 2003 and 2006 have now lapsed with no options being exercised. The fifth tranche expired on 14 December 2011 with 432,500 options being exercised from the original 1,139,000 options issued.

The sixth tranche expired on the 28 November 2012 with 1,115,000 options being exercised from the original 1,430,000 options issued. The seventh tranche became exercisable at a price of $0.95 each from 27 November 2012 and of the 1,560,000 options issued in that tranche we are pleased to report that 1,137,000 have been exercised to date. The holders have until 27 November 2013 to exercise their remaining options. It is our understanding that a good proportion of these shares have been retained by the employees since exercising.

Disclosures will continue to be made in relation to the share options issued by the Group as and when options are exercised or lapse.

The Board has also undertaken to this year review the current share options scheme to ensure that it remains relevant in its aim to appropriately incentivise management and also in comparison to other share based incentive schemes operated by other companies. In particular, one of the areas we are currently looking at closely is to align the approval and issue dates of share options.

Community Sponsorship:

As part of the recent 150 year celebrations and to recognise that every great organisation is dependent on its great people, we announced our intention for Briscoe Group to establish an Education Foundation in the form of scholarships to eligible selected Briscoe Group employees or their children. The purpose of the scholarships will be to encourage tertiary level study predominantly in New Zealand among deserving employees of the Company or their children, in a field that is important or complementary to a core function of the business.

We are proud to be a key partner of Cure Kids and believe it's important to put our support and resources behind a cause that fits our values. To date we have raised in excess of $2.8 million to help them fund leading-edge research to enhance the quality of life for thousands of Kiwi children and their families.

Alaister Wall continues as a director of Cure Kids, with support for the charity also coming from throughout the Group and from Group suppliers and other parties we work with.

In addition to our alignment with Cure Kids we support a wide variety of local community based charities, sports clubs and other initiatives by donating product to support fundraising efforts.

As a company we are astutely aware of the responsibilities of corporate citizenship and recognise the appropriateness of an organisation such as ours giving back to the community of New Zealand on whom we are so reliant.

Al to update meeting

Alaister Wall already actively contributes on behalf of the Group to a wide range of community support activities. We also benefit as a Group from the generosity of the R A Duke Trust in supporting such initiatives of the Company and its employees. We will be keeping you fully informed of our work in this area, which will benefit from Al's increasing involvement.

Directors, Management and Staff:

In addition to participating in formal monthly Board meetings throughout the year, the directors attended other meetings of directors and regular meetings of the Board's Audit and Human Resources Committees.

Of note is the growth and development of our executive team. The leadership team is robust and in our view impressive. Under Rod we have as you know Geoff Scowcroft as CFO and Pete Burilin as COO. They are both similarly supported by innovative and energetic teams across Merchandising, Retail Operations, Finance, IT and Internal Audit. The list goes on with impressive commitment in HR, Loss Prevention, Marketing, Property, Warehousing, and online.

Our retail leadership under our distinctive model continues to flourish. The personal growth and skills base of our retail teams continue to grow. The cultural style is inclusive and seeks to balance the demands of competitive retail with team and individual satisfaction and sense of belonging to the Briscoe Group.

There is much media discussion of diversity of workforce and specifically the opportunity for women in management and governance. We are unashamedly an organisation which is based on meritocracy and personal achievement. We would note however that of our 32 Business Managers 38% are women and within the next tier of Retail Managers, that ratio increases to 56%. In addition, in senior support office roles our HR, Loss Prevention, Marketing and Internal Audit teams are all led by women.

I would also like to comment on the current composition of the Board of directors.

Since the resignation nearly two years ago, effective from 30 September 2011, of John Skippen as a director of Briscoe Group, I along with my fellow directors have been conscious of the need to appoint a suitable and relevant director to replace John. The attributes we as a Board consider important for another director to possess would include, an understanding of the New Zealand retail environment, relevant management and governance experience and preferably a knowledge of multi-channel retailing. We are a small team and ensuring that as a Board we have complementary skills and an ability to work closely together is obviously critical. It is not a short brief, but I want to assure you that we are making good progress and I would hope to be making an announcement on behalf of the Board within the next few months.

You will be aware from your Notice of Meeting that the resolutions include a request to increase directors' remuneration by $95,000 from $185,000 to $280,000. The Board wishes to have capacity to appoint a new director in the current year, to manage fair and reasonable increases over time and to avoid being constrained in adding another director in the future if a special need arises or a particularly good candidate becomes available. While at the same time ensuring that the Directors' fees paid are in line with those of New Zealand based organisations of a similar scope and size to Briscoe Group.

On behalf of my fellow directors, I wish to acknowledge the enormous contributions of all employees to the Group's performance during the year. Their contributions are sincerely appreciated.

[Share Investor]

2:53pm, 16 May 2013 | ADDRESS
16 May 2013

Thanks Rosanne. Welcome you to our 2013 Annual General Meeting and thank you all for coming. Once again I am delighted to report to you that Briscoe Group continues to deliver consistently outstanding results.
We continue to trade well, delivering profit increases that are ahead of most competitors. My team at Briscoe Group remains committed to continuous and constant improvement. The market conditions remain tough and it is a credit to the team that they really have stuck to their knitting during difficult trading conditions.

Just to recap on the key highlights from our F2013 result:

Same store sales increased by 2.6% in a year when RS was competing with the positive effect that the RWC had generated in the previous year

Gross profit margin increased from 39.5% to 40% assisted by the effect of the continued strength of the NZ$ versus US$.

Stock turn improved despite an increase in the amount of product imported directly by BGR.

NPAT improved by 10.7%
Given the tough trading conditions for retailers throughout the year we are proud of these results.

The start to this current financial year has been challenging due to the fantastic summer weather that seems to be never ending. It's tough to sell heaters, blankets, sweatshirts and jackets in March when the temperature is in the mid 20's! Despite this unseasonal weather we are pleased with the start to the year.

Group sales for the quarter ended 28 April 2013 were $108.6million, representing an increase of 5.9% against the same quarter last year.
The continued competitiveness across the retailing industry and the very late start to the winter season has impacted the gross margin percentage which has tracked below last year during this quarter. However, the strong lift in sales and the continued tight control of costs has resulted in a tax paid profit in line with that produced for the three months to the end of April last year.
Homeware sales increased by 5.5% to $69.7M for the quarter and sporting goods increased sales significantly by 6.6% to $38.8Mm. Same store sales increased by 2.4% for homeware and by 5.3% for sporting goods compared with the year prior.
BGR's continued strong performance gives us confidence that our culture of continuously improving the basics of our business will continue to provide profit growth.

Our experience in the on-line space has confirmed that there is significant growth available to BGR by further developing our on-line businesses. This year we plan to increase the number of fulfillment hubs to allow for substantial growth in both the homeware and sporting goods sectors. The way we market our retail brands is changing and increasingly we are using a mix of traditional and on-line media to effectively reach the markets we wish to target. So far this year total visits to our websites has averaged more than 750,000 visits per month, with online sales more than 100% up on the first three months for last year. While we recognise these sites have only been fully transactional for around 18 months we are very encouraged by the growth we are experiencing.
We remain committed to offering our customers the best places to shop, be it on-line or in traditional stores, and will continue to upgrade and add suitable locations to our network.
This year we will continue to focus on getting the best return from every metre of retail space we occupy. Projects across Briscoes Homeware and Rebel Sport stores will focus on updating and relaying fixtures to maximize linear footage, replacing service counters to improve customer service and to free up retail space. Projects of this nature have delivered good results over the last 2 years and the projects planned for this year will do the same.
Merchandise.
Retailing is still about getting the right product at the right price, in the right place at the right time. Our merchandise team remains focused on building product assortments that offer our customers real choice and value. Last year I talked about the addition of premium brands at accessible prices and this drive has continued throughout the year. When our buying team travel overseas to Europe, India or China their focus is always on improving the ranges we offer our customers and the continued strength of the NZ$ has helped us to continue to build additional top quality products into our ranges. Developing merchandise ranges is genuinely exciting and I'm confident that the new product we will offer our customers over the coming year will continue to keep Briscoes Homeware as the first choice for homewares.
Marketing
The purpose of our marketing is to position our retail brands as the first choice for their market. During times when sales are tougher to achieve we have the determination and the ability to change the mix and tone of the messages we promote to fight to retain market share. We believe this flexibility is a key strength of Briscoe Group and remain committed to this approach. Store Operations
Constant improvement is the Briscoe Group culture and it applies equally in stores as it does in Support Office. Our store based people are the face of our business and as such are critically important to our success. The Sales and Service programme which I mentioned last year has now been rolled out throughout every profit centre and is used to create a weekly focus on the things which we determine are the key drivers of the business. Sales and service calls are completed by the GM Operations on a weekly basis with groups of Business Managers. This process not only creates the priorities for the week but also gives our Business Managers a forum to discuss issues and share ideas.
We remain committed to our profit centre structure and believe that having motivated Business Managers, who are accountable for their performance and rewarded on their results, creates a positive environment where customers are the focus.

Store Development Programme for 2013.
I spoke last year about the ambitious nature of our development programme for 2012. I'm happy to confirm that all of the planned projects were completed which is a credit to the guys and girls who have put in plenty of blood, sweat and tears to get the projects completed on time and under budget. Thank you and well done.
As mentioned earlier, this year we will finish the project started last year to replace service counters in Briscoes Homeware and Rebel Sport stores and replace apparel fixtures in Rebel Sport stores. These projects give us the opportunity to maximize the use of our retail space and are often accompanied by a general relay of the remaining store fixtures to keep the stores fresh and current. While not as glamorous as new store openings these projects deliver real benefits to existing customers as well as improved performance.
In conclusion. Briscoe Group has continued to trade well producing solid returns for our shareholders. We have done this because our people have focused on;
o Improving the quality and value of our product ranges
o Creating impactful, relevant promotions delivered to our customers via a medium of their choice and through a channel of their choice
o Continuing to improve our inventory management and analysis skills to drive profit through improved product availability
o Keeping costs firmly under control, and
o Improving the service we offer our customers.
To us these are the retail basics and they will continue to be our focus in a constantly changing retail landscape
Thank you.