Michael Hill’s nine-month revenues lift 9.1%, plans ASX listing

By

Benjamin Fitzgerald

Published
Apr 21, 2016

Jewellery retailer Michael Hill International Limited said revenues rose 9.1% in the first nine months of its financial year, on the back of strong sales across all geographic markets.

Revenue at its Michael Hill and Emma & Roe jewellery chains advanced to A$420.8 million in the nine months ended March 31, compared to A$385.9 million a year earlier, the Brisbane-based company said in a statement.

In a separate press release, Michael Hill revealed plans to shift its primary share market listing from the NZX in New Zealand to the ASX. The retailer made the decision citing that most of its operations are based in Australia, which is also its largest market.

Sales at its Michael Hill stores in Australia rose 4.3% to $238.7 million, or by 3.5% excluding changes in stores. Michael Hill's New Zealand sales rose 6.5% to $84.4 million (NZ$97.3 million), an unchanged percentage on a same-store basis. 

Canadian sales rose 20% to $73.5 million (C$72.4 million), or 5.8% on a same-store basis, while US sales jumped 29% to $13.7 million (US$10.5 million), or 2.9% same-store. The retailer added eight stores during the period, taking the total to 295.

Michael Hill Ltd's Emma & Roe chain boosted Australian sales 83% to $6.3 million. Its New Zealand sales for the brand gained 165% to $491,875 (NZ$545,694), the company said. The company opened six new Emma & Roe stores during the period, taking the total to 14.

The ASX listing will require approval from the company’s shareholders and New Zealand’s High Court as a scheme of arrangement under the Companies Act 1993, the ASX and the NZX. Approval is needed from 75% of shareholders entitled to vote and voting in each ‘interest class’, and an overall 50% majority vote from all shareholders.

A special meeting of shareholders will be held in June, and, if shareholders approve the proposal the ASX listing will be in place from the start of the new financial year commencing July 1.