Summary: Group revenue rises 3.1% to $112.0 million; retail operations achieve acceptable same-store sales growth Net profit before tax rises to $0.6 million from break-even in the same period last year Smiths City Finance benefits from growth in the retail business with the loan book growing to $69.3million from $64.7 million at the same time a year ago. Significant investment in the store network and group information systems still required Smiths City intends to transition to the new NZX listing rules in early January 2019 Outlook for the full year linked to the success of the Christmas trading season.Smiths City (NZX.SCY) today reports a return to profit in the six months to 31 October 2018, flowing from an ongoing strategy reset in its national furniture and appliance retail business and growth in its consumer finance business.Group revenue for the six months to 31 October 2018 rose 3.1% to $112.0 million from $108.6 million in the same period a year ago. The half-year saw gains from same-store sales growth and rising finance income diluted by the impact of the closure of the under-performing locations at Ngauranga Gorge, Queenstown and Riccarton and continuing challenges in the Auckland market.The growth in sales has required careful management of margins, which eased during the period. Net profit before tax for the six-months rose to $0.6 million up from ‘break even’ in the same period a year ago. A small, and narrower, trading loss in the retail business was offset by positive earnings from the finance business. The result includes the utilisation of $0.9 million from the previously-announced provision for onerous leases.Chair Alastair Kerr said: “Retail conditions in our core categories over the last six months have been supportive and the Group has begun to see some early encouraging results from an ongoing strategic review. As the painful, but prudent, provisions we took on onerous leases at the end of last year show, the Group is demonstrating a willingness to take all necessary steps to drive improvements in shareholder value.“This spirit – coupled with the success of our centenary celebrations – is starting to drive renewed interest and a reappraisal of our proposition. These are very early days. The challenge before us is to maintain this momentum through the important Christmas trading period and beyond.”Balance sheetSmiths City remains well funded. As at 31 October 2018, net debt increased to $58.6 million, from $46.0 million as at the end of October 2017 and $54.7 million at the end of April 2018. This was primarily due to the growth
