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RAPAPORT... Michael Hill International anticipates that revenue rose 10 percent year on year to $240 million (AUD 270.9 million) for the six months that ended on December 31, according to a preliminary announcement it filed overnight. Meanwhile, same-store sales rose 4.7 percent during the period, based on Australian dollars. In local currencies, the largest decline in revenue came from the jeweler's U.S. operations where sales fell 8.4 percent to $5 million; however, same-store sales rose 2 percent, while sales in New Zealand dropped 3.5 percent to $51 million (NZD 60.9 million) and same-store sales fell 4.1 percent. Otherwise, revenue improved 5.5 percent in Australia to $152 million (AUD 171.7 million), where same-store sales rose 5.5 percent and Canada surged 28.5 percent to $34 million (CAD 37.9 million) as same-store sales rose 7.9 percent.
First-half results were helped, in part, by the weakening of Australia's dollar against the other three currencies during the period, according to Michael Hill. The professional care plan continues to deliver good cash flow to the business and is now also contributing solidly to the group’s overall results. The revenue from these plans is carried on the balance sheet as deferred revenue and is then brought to income over the life of the plans (three year plans, and lifetime plans which are assigned a 10 year notional life for income recognition purposes). Michael Hill expects that earnings before taxes will be in the range of $26 million to $26.5 million (AUD 29 million to AUD 30 million) compared with $25.3 million (AUD 28.6 million in 2012). Michael Hill will release its official results on February 14.
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