Results for the 6 Month Period Ended 1 February 2018

HALLENSTEIN GLASSON HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 1 February 2018 (unaudited)
1


Half Year
ended
1/2/18
Half Year
ended
1/2/17
$000$000
Sales revenue146,757 122,911
Cost of sales(56,551) (51,555)
Gross profit90,206 71,356
Other operating income423 387
Selling expenses
(51,396) (44,238)
Distribution expenses
(3,894) (3,732)
Administration expenses(14,320) (11,084)
Total expenses(69,610) (59,054)
Operating profit21,019 12,689
Finance income136 135
Profit before income tax21,155 12,824
Income tax(6,013) (3,639)
Net surplus attributable to the shareholders of the parent15,142 9,185
Other comprehensive income
Fair value gain in cash flow hedge reserve net of tax
1,057 1,897
Increase in share option reserve
64 56
Total comprehensive income for the year
16,263 11,138
Earnings per share
Basic and diluted earnings per share
25.39
15.40
Group

HALLENSTEIN GLASSON HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 1 February 2018 (unaudited)
2

As at 1/2/18
As at 1/2/17As at 1/8/17
$000$000$000
Equity
Contributed equity27,061 27,637 27,270
Asset revaluation reserve15,915 12,617 15,915
Cashflow hedge reserve(597) (521) (1,654)
Share option reserve94 259 327
Retained earnings22,074 17,169 16,615
Total equity64,547 57,161 58,473
Represented by
Current assets
Cash and cash equivalents18,318 11,650 12,552
Trade and other receivables488 353 779
Advances to employees
201 249 238
Prepayments4,645 3,642 3,873
Inventories
18,676 17,637 20,605
Total current assets42,328 33,531 38,047
Non-current assets
Property, plant and equipment45,312 40,445 44,864
Intangible assets457 431 539
Deferred tax2,165 2,006 1,694
Total non-current assets47,934 42,882 47,097
Total assets90,262 76,413 85,144
Current liabilities
Trade payables7,236 4,195 9,169
Employee benefits5,370 4,258 4,500
Other payables9,221 8,495 8,187
Derivative financial instruments842 723 2,298
Taxation payable3,046 1,581 2,517
Total current liabilities25,715 19,252 26,671
Total liabilities25,715 19,252 26,671
Net assets64,547 57,161 58,473
Group

HALLENSTEIN GLASSON HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 1 February 2018 (unaudited)
3

Share
Capital
Treasury
Stock
Asset
revaluation
reserve
Cash
flow
hedge
reserve
Share
Option
Reserve
Retained
earnings
Total
Equity
$000$000$000$000$000$000$000
Balance at 1 August 2016
29,279
(1,630) 12,617 (2,418) 203 17,826 55,877
Comprehensive Income
Profit for year - - - - -
9,185
9,185
Cash flow hedges net of tax - - - 1,897 - -
1,897
Increase in share option reserve - -
- - 56 -
56
Total comprehensive income - -
- 1,897 56 9,185
11,138
Transactions with owners
Purchase of treasury stock
- (100) - - - - (100)
Dividends - 88
- -
-
(9,842)
(9,754)
Total transactions with owners
- (12) - - - (9,842)
(9,854)
Balance at 1 February 201729,279

(1,642)

12,617

(521) 259 17,169 57,161
Comprehensive Income
Profit for year -
- -
- - 8,084
8,084
Revaluation net of tax - -
3,298 - - - 3,298
Cash flow hedges net of tax - - - (1,133)
- - (1,133)
Increase in share option reserve
- - - -
73 - 73
Total comprehensive income
- - 3,298 (1,133) 73
8,084
10,322
Transactions with owners
Purchase of treasury stock - (500) - - - - (500)
Sale of treasury stock - 51
- - - - 51
Transfer of share option reserve to retained
earnings
- - - -
(5)
5
-
Dividends - 87 - - - (8,648)
(8,561)
Gain/loss on sale of treasury stock
transferred to retained earnings
- (5) - -
-
5
-
Total transactions with owners - (367) - -
(5) (8,638) (9,010)
Balance at 1 August 201729,279
(2,009)
15,915
(1,654) 327 16,615 58,473
Comprehensive Income
Profit for year
- -
- - - 15,142 15,142
Cash flow hedges net of tax
- - - 1,057
- - 1,057
Increase in share option reserve
-
- - - 64 - 64
Total comprehensive income
- - - 1,057 64 15,142 16,263
Transactions with owners
Purchase of treasury stock
- (750) - - - - (750)
Sale of treasury stock
-
607 - - - - 607
Transfer of share option reserve to retained
earnings
- - - - (297) 297 -
Dividends
- 94 - - - (10,140) (10,046)
Gain/loss on sale of treasury stock
transferred to retained earnings
- (160)
- - - 160 -
Total transactions with owners
- (209) - -
(297) (9,683) (10,189)
Balance at 1 February 2018
29,279 (2,218) 15,915 (597) 94 22,074 64,547
Group

HALLENSTEIN GLASSON HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 1 February 2018 (unaudited)
4

Half Year
ended 1/2/18
Half Year
ended
1/2/17
$000$000
Cash Flows from operating activities
Cash was provided from:
Sales to customers146,507 124,218
Rent received384 387
Interest received126 121
Interest on debtors10 13
147,027 124,739
Cash was applied to:
Payments to suppliers94,362 82,353
Payments to employees25,609 23,730
Taxation paid6,345 3,509
126,316 109,592
Net cash flows from operating activities20,711 15,147
Cash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant and equipment and intangible assets5 3
Repayment of employee advances37 97
42 100
Cash was applied to:
Purchase of property, plant and equipment and intangible assets4,798 7,934
4,798 7,934
Net cash flows applied to investing activities(4,756) (7,834)
Cash flows from financing activities
Cash was provided from:
Proceeds from sale of treasury stock and dividends701 88
701 88
Cash was applied to:
Dividend paid10,140 9,842
Purchase of treasury stock750 100
10,890 9,942
Net cash flows applied to financing activities(10,189) (9,854)
Net increase in funds held5,766 (2,541)
Cash and cash equivalents at the beginning of the period12,552 14,191
Cash and cash equivalents at the end of the period18,318 11,650
Group

HALLENSTEIN GLASSON HOLDINGS LIMITED
RECONCILIATION OF SURPLUS AFTER TAXATION
TO CASH FLOWS FROM OPERATING ACTIVITIES
For the six months ended 1 February 2018 (unaudited)
5

Half Year
ended
1/2/18
Half Year
ended
1/2/17
$000$000
Net surplus after taxation15,142
9,185

Add item classified as investing activity
Loss on sale of plant and equipment38
31

Add/(deduct) non cash items
Depreciation, amortisation and impairment of property, plant and
equipment
4,392

3,747
Deferred tax benefit(857) (453)
Revaluation of financial instruments(12)
(338)
Share option expense
64

56

Add/(deduct) movements in working capital items
Taxation payable524 582
Trade and other receivables and prepayments
(1,022)
1,084

Trade and other payables and employee benefits513
(1,110)

Inventories1,929
2,363

Net cash flows from operating activities20,711
15,147
Group

HALLENSTEIN GLASSON HOLDINGS LIMITED
SEGMENT I N FOR MAT I O N
For the six months ended 1 February 2018 (unaudited)
6


For the period ended
1 February 2018
Glassons
New
Zealand
Glassons
Australia
Hallenstein
Brothers
Storm
Hallenstein
Property
Parent
Total
Segments
$000
$000
$000$000
$000$000$000
INCOME STATEMENT
Sales revenue from external
customers
50,294 41,814 51,029
3,620

-

-

146,757

Cost of sales
(20,491) (14,508) (20,143)
(1,409)

-

-
(56,551)

Gross profit29,803 27,306

30,886

2,211

-

-
90,206


Finance income60 23 45 2 - 6

136

Depreciation and software
amortisation
1,085 1,113

1,435

128

186

-

3,947

Profit/(loss) before income tax
7,618 8,249 6,976 (2,051) 360
3


21,155


Income tax
(2,131) (2,312) (2,067)
598

(101)

-

(6,013)

Profit/(loss) after income tax
5,487 5,937 4,909

(1,453)

259

3

15,142

BALANCE SHEET
Current assets13,313

11,477
16,586
874

167
(89)
42,328
Non current assets10,877
9,067

9,634 1,118
17,238
-
47,934
Current liabilities8,040

9,194
6,292 1,725
431

33
25,715
Purchase of property, plant and
equipment and intangibles
1,460
1,991 1,207
122 18
-
4,798

For the period ended
1 February 2017
Glassons
New
Zealand
Glassons
Australia
Hallenstein
BrothersStorm
Hallenstein
Property
Parent
Total
Segments
$000
$000$000$000$000$000$000
INCOME STATEMENT
Sales revenue from external
customers
45,802
26,049

46,904 4,156
-
-
122,911

Cost of sales(19,687) (9,748) (20,623) (1,497) - (51,555)
Gross profit26,115

16,301
26,281
2,659
-

- 71,356

Finance income88
- 43 4 - - 135
Depreciation and software
amortisation
1,287
1,023 1,151 146 140
-
3,747
Profit before income tax5,701
1,640 5,029
44 410
-

12,824
Income tax(1,613)
(470) (1,428) (13)
(115) -

(3,639)

Profit after income tax4,088 1,170
3,601 31 295
-
9,185
BALANCE SHEET
Current assets12,710 3,934 2,857
12,033 (16) 2,013
33,531
Non current assets
10,314 7,426
9,484 1,124
14,534
-
42,882
Current liabilities7,191 5,267
5,602 966 193 33 19,252
Purchase of property, plant and
equipment and intangibles
1,462 2,600 3,576 296
- -
7,934

HALLENSTEIN GLASSON HOLDINGS LIMITED
EVENTS SUBSEQUENT TO BALANCE DATE
At 1 February 2018 (unaudited)
7


On 16 March 2018 the Group announced that it entered into an unconditional agreement for the sale
of the Storm business assets. The settlement is expected to be completed by 30 April 2018.

---

HALLENSTEIN GLASSON HOLDINGS LIMITED

UNAUDITED RESULTS FOR 6 MONTHS ENDED 1 FEBRUARY 2018
The company advises that Group sales for the 6 months to 1 February 2018 were $146.8 million, an
increase of 19.4% over the corresponding period last year ($122.9 million). Like for like sales for the
group were +10.8% on the prior year.
Gross margin rate for the Group for the six month period was 61.5% which was 3.4 percentage
points up on the prior year (58.1%). This was achieved through a strong sales performance, our
improved buying strategy and a reduction in promotional activity and discounting across all brands.
The net profit after tax was $15.1 million, an increase of 64.9% over the corresponding period last
year ($9.2 million). The result is in line with the guidance announced to the NZX on 16 February
2018.
Segment Results
Glassons
Sales in New Zealand for the 6 months were $50.3 million, an increase of 9.8% on the prior year, and
sales in Australia for the 6 months were $41.8 million, an increase of 60.5% on the prior year. Both
countries delivered a very strong Christmas trading period.
The team’s focus on fashion, speed to market, customer service and digital engagement continues to
deliver strong sales as well as a reduced dependency on discounting and promotions in both
markets. This, together with the strong focus placed on Australia by the management team and
along with the two new store openings, including Melbourne CBD, has delivered the strong growth.
Hallenstein Brothers
Sales for the 6 months were $51.0 million (including Australia), an increase of 8.8% on the prior year.
Hallenstein Brothers continues to build and evolve its established leadership position in New
Zealand, as well as its three stores in Australia. The focus on fashion, speed to market, customer
service and digital engagement continues to deliver solid results.
Storm
Storm sales were $3.6m which was a decrease of 12.9% on the prior year. During the period under
review, the planned closure of two stores resulted in an impairment charge of $1.7m being
recorded. Subsequent to balance date, the Group has entered into an unconditional agreement to
sell the assets of Storm. The stores planned for closure do not form part of the sale and will close at
the end of April.
E-Commerce
For the 6 month period, online sales have grown to over 11% of Group turnover. Our move away
from traditional marketing to digital, social and influencer events, together with our fashion and
speed to market continues to deliver and build engagement for both Glassons and Hallenstein
Brothers. The Group will continue to invest and build this area as we continue to further
differentiate ourselves from the competition.

Dividend
The Directors have declared a final dividend of 20 cents per share (fully imputed) to be paid on 13
th

April 2018. The balance sheet continues to be strong, inventories well controlled and the current
trading patterns have allowed the company to increase the dividend payment.
Future Outlook
Total group sales for the first 7 weeks of the 2018 Winter season have been encouraging, with an
increase of 18.2% on the same period last year. E-commerce sales growth continues to build and will
remain a key focus for the Group. Due to the sale of Storm, from 1 May 2018 sales versus previous
year will be affected.
Following the sale of Storm, the Group’s focus is on building and growing Glassons and Hallenstein
Brothers in both the New Zealand and Australian markets, with each of the brands in a strong
position going in to the key Winter trading months.

Mark Goddard
Group CEO

---

Hallenstein Glasson Holdings Limited
Results for announcement to the market

Reporting Period 6 months to 1 February 2018
Previous Reporting
Period
6 months to 1 February 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ 146,757 +19.4%
Profit (loss) from
ordinary activities after
tax attributable to
security holders
$NZ 15,142 +64.9%
Net profit (loss)
attributable to security
holders
$NZ 15,142 +64.9%

Interim Dividend Amount per security Imputed amount per
security
$NZ 0.20 NZ 0.07778

Record Date 6 April 2018
Dividend Payment Date 13 April 2017

Comments: A brief Please refer to Group CEO’s Report (attached)


Net Tangible Assets per
Share
2018 2017
$NZ 1.07 $NZ 0.95

---

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Reprinted May 2006Page 1 of 1
021 52881409 306 2523
Director's resolution
04201829
EMAIL: announce@nzx.com
Stuart Duncan
HALLENSTEIN GLASSON HOLDINGS LIMITED
Ordinary SharesNZHLGE 0001S4
Notice of event affecting securities
$0.013889$0.077778
Date Payable
Enter N/A if not
applicable
13 April, 2018
$0.200
NZ DOLLARS$0.035294
RETAINED EARNINGS
6 April, 201813 April, 2018
$
$11,929,812
In dollars and cents