FY to 28/01/2018 $61.32M ($59.42M) +3.20% Fin Div 11.50 cps

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OFFICE USE ONLY
Ex Date:
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09 815 373709 815 3738
Directors Resolution
03201812
TO FAX ++64-4-473-1470
Geoffrey Peter Scowcroft
Briscoe Group Limited
Briscoe Group Limited Ordinary SharesNZBGRE0001S4
Notice of event affecting securities
$0.007986$0.044722
Date Payable
Enter N/A if not
applicable
29 March, 2018
$0.1150
NZD$0.020294
RETAINED EARNINGS BRISCOE GROUP LIMITED
26 March, 201829/03/2018
$
$25,395,968
In dollars and cents

---

BRISCOE GROUP LIMITED
Results for announcement to the market
Reporting Period Full Year 30 January 2017 to 28 January 2018
Previous Reporting Period Full Year 1 February 2016 to 29 January 2017

Amount (000s) Percentage change
Sales revenue from
ordinary activities

$603,086

+3.5%
Profit from ordinary
activities after tax
attributable to shareholders


$61,325


+3.2%
Net Profit attributable to
shareholders.

$61,325

+3.2%

Final Dividend Gross amount per share Imputed amount per share

11.50 cents 11.50 cents

Audit The abridged financial statements attached to this report
have been audited.

Comments: Refer to the section “Full Year Review” for commentary.
Earnings before interest and tax (EBIT) is a non-GAAP
measure.

Full Year Review

Briscoe Group Posts Record Profit
Annual Sales top $600 million for the first time

Highlights for the full year ended 28 January 2018
• Total sales $603.09 million, +3.47%
• Same store sales growth, +3.11%
• Gross profit $244.17 million, +2.01%
• Gross profit margin 40.49% (Last year 41.07%)
• EBIT $83.36 million, +4.43%
• NPAT $61.32 million, +3.20%, normalised +8.16% per below
• Final dividend 11.50cents per share, +4.55%
• Total dividend for the year 19.00 cents per share, +5.56%

Providing customers with an outstanding shopping experience both in its physical stores and
online, together with a close focus on inventory management, has allowed Briscoe Group to once
again post record results for the year to 28 January 2018.

Briscoe Group Managing Director Rod Duke said, “Net profit after tax (NPAT) of $61.32 million for
the year (52 weeks) ending 28 January 2018, a 3.20% increase on the $59.42 million for the
previous year (52 weeks), was a very satisfactory result in what had been a highly challenging
year.

“If you look back at the past year, we had fires in Christchurch in February; a major flood in April; a
relatively late start to winter across the country, with warmer than average temperatures in
Auckland and the central North Island during key promotional periods in June; intense cold, snow
and heavy rain in many parts of the country during July; and then the British & Irish Lions tour,
which sucked up a big chunk of discretionary spending,” said Mr Duke.

“Given this background, we are pleased with the way our in-store teams and support functions
have continued to drive growth and manage inventory throughout the year,” he said.

Mr Duke said, “Last year’s reported NPAT of $59.42 million included one-off benefits totaling $2.7
million in relation to property sales in Hastings. Adjusting for these one-off items gives an increase
in underlying NPAT of 8.16% on the 2016-2017 year.”

2017-2018 NPAT included dividends received of $5.21 million from the Group’s 19.8%
shareholding in Kathmandu Holdings Limited. Mr Duke said, “Briscoe’s Board remained an
interested observer of Kathmandu’s performance and of potential opportunities in the industry
more broadly”.

2017-2018 earnings before interest and taxation of $83.36 million (previous year $79.83 million)
were generated on sales revenue of $603.09 million, an increase of 3.47% on the $582.84 million
reported in the previous year. Mr Duke said, “The small decrease in gross profit margin was a
function of the intense competition across the retail sector and other competing claims on
consumers’ discretionary spending”.

Expansion and enhancement of its Briscoes and Rebel Sport stores remained an investment
priority for the Group, with $5.4 million invested in developing Group-owned property in Wellington
City, Petone, Mt Albert and Silverdale. $6.4 million invested in the fit-out and refurbishment of new
and upgraded stores, and more than $2 million invested in upgraded security camera systems,
online platform improvements, enhancements to system software and hardware upgrades.

The Group was also well advanced on improvements to its online offering, with upgrades to its web
platform underway, new fulfillment hubs in Whanganui and Hamilton up and running and plans to
roll out a Click and Collect service, following a successful trial through the Botany homeware store.

“We still believe that using the knowledge we have of our customers and our market to give people
an enjoyable instore shopping experience, complemented by an efficient online offering, will allow
us to maintain a competitive advantage over overseas-based internet retailers,” said Mr Duke.

Group Chair Dame Rosanne Meo said, “This year’s results have shown that giving customers
quality products and services and a focus on executing the basics well, is still a recipe for success.

“There is no doubt the retail sector is at the sharp end of rapid changes in technology and society
which will require retailers to identify and address specific strategic issues, particularly in relation to
optimising the balance between their online and bricks and mortar offerings.

“On behalf of the Board, I would like to acknowledge the great work done by all staff to maintain
Briscoe Group’s status as New Zealand’s top homeware and sporting goods retailer.”

Dame Rosanne announced that the directors have resolved to pay a final dividend of 11.50 cents
per share (cps). The dividend is fully imputed and, when added to the interim dividend of 7.50 cps,
brings the total dividend for the year to 19.00 cps, an increase of 5.56% over last year’s total
dividend of 18.00 cps.

The final dividend will be paid on 29 March 2018. The share register will close to determine
entitlements to the dividend at 5 pm on 26 March 2018.


Monday 12 March 2018

Contact for enquiries:

Rod Duke
Group Managing Director
Tel: (09) 8153737

BRISCOE GROUP LIMITED
CONSOLIDATED INCOME STATEMENT
for the 52 week period ended 28 January 2018


52 Week
Period ended
28 January 2018
52 Week
Period ended
29 January 2017
$000 $000
Sales revenue 603,086 582,840
Cost of goods sold (358,914) (343,483)
Gross profit
244,172 239,357
Other operating income
6,260 7,457
Store expenses (101,763) (100,461)
Administration expenses (65,305) (66,526)
Earnings before interest and tax 83,364 79,827

Finance income 567 237
Finance costs (136) (369)
Net finance income / (costs) 431 (132)

Profit before income tax 83,795 79,695
Income tax expense (22,470) (20,275)
Net profit attributable to shareholders 61,325 59,420

BRISCOE GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the 52 week period ended 28 January 2018


52 Week
Period ended
28 January 2018
52 Week
Period ended
29 January 2017
$000 $000
Net Profit attributable to shareholders 61,325 59,420

Other comprehensive income:

Items that may be subsequently
reclassified to profit or loss:
Change in value of investment in equity securities
18,845 15,637
Fair value loss recycled to income statement from cashflow
hedge reserve
484 3,726
Fair value loss taken to the cashflow hedge reserve (621) (7,375)
Deferred tax on fair value loss taken to income statement from
cashflow hedge reserve
(136) (1,043)
Deferred tax on fair value loss taken to cashflow hedge reserve 174 2,065
Total other comprehensive income 18,746 13,010
Total comprehensive income attributable to shareholders 80,071 72,430

BRISCOE GROUP LIMITED
CONSOLIDATED BALANCE SHEET
as at 28 January 2018


Period ended
28 January 2018
Period ended
29 January 2017
$000 $000
ASSETS

Current assets
Cash and cash equivalents 78,193 60,066
Trade and other receivables 2,737 2,559
Inventories 74,494 78,931
Derivative financial instruments 47 44
Total current assets 155,471 141,600

Non-current assets
Property, plant and equipment 83,326 76,081
Intangible assets 1,364 960
Deferred tax 2,983 3,015
Investment in equity securities 95,427 76,582
Total non-current assets 183,100 156,638

TOTAL ASSETS 338,571 298,238

LIABILITIES

Current liabilities
Trade and other payables 81,161 84,970
Taxation payable 6,980 6,284
Derivative financial instruments 1,276 1,112
Total current liabilities 89,417 92,366

Non-current liabilities
Trade and other payables 726 719
Total non-current liabilities 726 719

TOTAL LIABILITIES 90,143 93,085

Net assets 248,428 205,153

EQUITY

Share capital 56,467 52,756
Cashflow hedge reserve (915) (816)
Share options reserve 1,045 957
Other reserves 26,744 7,899
Retained earnings 165,087 144,357

TOTAL EQUITY 248,428 205,153

Net Tangible Assets per Security (cents) 111.90 93.02

BRISCOE GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
for the 52 week period ended 28 January 2018

52 Week
Period ended
28 January 2018
52 Week
Period ended
29 January 2017
$000 $000
OPERATING ACTIVITIES

Cash was provided from

Receipts from customers 603,096 582,579
Rent received 801 792
Dividends received 5,216 4,414
Interest received 472 179
Insurance recovery 243 220
609,828 588,184
Cash was applied to

Payments to suppliers & employees (496,049) (459,993)
Interest paid (129) (361)
Net GST paid (22,418) (20,373)
Income tax paid (21,704) (21,473)
(540,300) (502,200)

Net cash inflows from operating activities 69,528 85,984

INVESTING ACTIVITIES

Cash was provided from

Proceeds from sale of property, plant and equipment 6 7,315
6 7,315
Cash was applied to

Purchase of property, plant and equipment (12,888) (17,661)
Purchases of intangible assets (1,116) (615)
(14,004) (18,276)

Net cash outflows flows from investing activities (13,998) (10,961)

FINANCING ACTIVITIES

Cash was provided from

Net proceeds from borrowings - -
Issue of new shares 3,282 3,713
3,282 3,713
Cash was applied to

Dividends paid (40,710) (36,051)
(40,710) (36,051)

Net cash outflows from to financing activities (37,428) (32,338)

Net increase in cash and cash equivalents 18,102 42,685
Cash and cash equivalents at beginning of period 60,066 17,554

Effect of exchange rate changes on cash and cash
equivalents 25 (173)

Cash and cash equivalents at period end 78,193 60,066

BRISCOE GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the 52 week period ended 28 January 2018

Share Cashflow Share Other Retained Total
Capital Hedge Options Reserves Earnings Equity



Reserve Reserve



$000 $000 $000 $000 $000 $000
Balance at 31 January 2016

48,242 1,811 1,291

(7,738)

120,818 164,424
Net profit attributable to shareholders for the period

- - - - 59,420

59,420
Other comprehensive income:


Change in fair value of investment in equity securities

- - - 15,637 - 15,637
Net fair value loss taken through cashflow hedge reserve

- (2,627) - - - (2,627)
Total comprehensive income for the period

- (2,627) - 15,637 59,420 72,430
Transactions with owners:


Dividends paid

- - - - (36,051) (36,051)
Share options charged to income statement

- - 637 - - 637
Share options exercised

4,514 - (801) - - 3,713
Transfer for share options lapsed and forfeited

- - (170) - 170 -
Balance at 29 January 2017

52,756 (816) 957

7,899 144,357 205,153
Net profit attributable to shareholders for the period

- - - - 61,325 61,325
Other comprehensive income:


Change in value of investment in equity securities

- - - 18,845 - 18,845
Net fair value loss taken through cashflow hedge reserve

- (99) - - - (99)
Total comprehensive income for the period

- (99) - 18,845 61,325 80,071
Transactions with owners:


Dividends paid

- - - - (40,710) (40,710)
Share options charged to income statement

- - 632 - - 632
Share options exercised

3,711 - (429) - - 3,282
Transfer for share options lapsed and forfeited

- - (115) - 115 -
Balance at 28 January 2018

56,467 (915) 1,045 26,744 165,087 248,428

Earnings per Security (EPS)

Calculation of basic and fully diluted EPS in accordance with IAS 33: Earnings Per Share

Current full year
(cents per share)
Previous corresponding full
year (cents per share)
Basic EPS 27.8 27.2
Diluted EPS 27.3 26.5

Dividends Paid / Payable

Date Paid / To be paid
Cents per share (fully
imputed)
Interim Dividend for the period ended
28 January 2018
2 October 2017 7.50
Final Dividend for the period ended
28 January 2018
29 March 2018 11.50

Segment Information




For the period ended
28 January 2018

Homeware

$000


Sporting goods

$000

Eliminations /
Unallocated
$000


Total Group

$000

Sales Revenue


383,796

219,290

-

603,086


Earnings Before Interest
and tax



46,120

30,225

7,019

83,364





For the period ended
29 January 2017

Homeware

$000


Sporting Goods

$000


Eliminations /
Unallocated
$000


Total Group

$000


Sales Revenue


372,507

210,333

-

582,840


Earnings Before Interest
and tax


46,381

27,747

5,699

79,827