Briscoes expects improved earnings

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Retailer Briscoe Group is expecting first half ebit (earnings before interest and tax) to be above the $3.6 million for the corresponding period of 2008.

Managing director Rod Duke today said the improvement would be on a "very, very weak" period in the first half of 2008, and would be achieved despite a "pretty static" sales line.

He said on Radio New Zealand that the $3.6m ebit for the six months to July 27, 2008 was down from $14.7m in the corresponding period of 2007.

"What we're saying this year, is our ebit for the first six months of this year, we have an expectation that it will be north of $3.6m but it won't be even close to $14.7m," Mr Duke said.

The months from January to June 2008 were probably the weakest he could remember from 20 years in this country.

The group -- incorporating the brands Briscoes Homeware, Living & Giving, Urban Loft, and Rebel Sport -- had made improvements in its gross margin and its cost of doing business.

It had tried to batten down the cost of doing business, ensured it was competitive in the market and did not incur any debt, Mr Duke said.

"We're pretty cash rich at the moment. We're holding no debt at all."

At the start of May Briscoe Group reported first quarter sales 0.1 percent lower than a year earlier at $90.2m.

At the time Mr Duke said the company was expecting to report a bottom line profit for the half year to July 26 that was ahead of the first half of last year.

Briscoe shares last traded at $1 on Monday, near the year high of $1.05 reached at the end of July 2008.

NZPA