HLG Full Year Results for the period ending 1 August 2025
New Zealand Stock Exchange Listing Rules
Disclosure Full Year Report
For the year ending 1 August 2025
Contents
Media Release
Results Announcement
Audited Financial Statements & Audit Report
Distribution Notice
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Results announcement
Results for announcement to the market
Name of issuer Hallenstein Glasson Holdings Limited
Reporting Period 12 months to 1 August 2025
Previous Reporting Period 12 months to 1 August 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing operations $470,740 8.1%
Total Revenue $470,740 8.1%
Net profit/(loss) from continuing
operations
$39,461 14.4%
Total net profit/(loss) $39,461 14.4%
Final Dividend
Amount per Quoted Equity Security $0.30500000
Imputed amount per Quoted Equity
Security
$0.06705889
Record Date 5 December 2025
Dividend Payment Date 12 December 2025
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$1.85 $1.71
A brief explanation of any of the
figures above necessary to enable
the figures to be understood
For further information refer to the attached:
Chairman’s announcement
Financial Statements and the Independent
Auditor’s Report
Authority for this announcement
Name of person
authorised to make
this announcement
Cameron Alderton
Contact person for this
announcement
Cameron Alderton
Contact phone number +64 22 394 5785
Contact email address cameron@glassons.com
Date of release through MAP
26 September 2025
Audited financial statements accompany this announcement.
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Distribution Notice
Please note: all cash amounts in this form should be provided to 8 decimal places
Section 1: Issuer information
Name of issuer Hallenstein Glasson Holdings Limited
Financial product name/description Ordinary Shares
NZX ticker code HLG
ISIN (If unknown, check on NZX
website)
NZHLGE 0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 5/12/2025
Ex-Date (one business day before the
Record Date)
4/12/2025
Payment date (and allotment date for
DRP)
12/12/2025
Total monies associated with the
distribution
1
$18,192,964 based on the number of units on issue at
the date of the form
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.37205889
Gross taxable amount
3
$0.37205889
Total cash distribution
4
$0.30500000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.03043012
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Partial imputation
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
If fully or partially imputed, please
state imputation rate as % applied
6
18.02%
Imputation tax credits per financial
product
$0.06705889
Resident Withholding Tax per
financial product
$0.05572054
Section 4: Distribution re-investment plan1 (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
Date strike price to be announced (if
not available at this time)
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
DRP strike price per financial product
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Cameron Alderton
Contact person for this
announcement
Cameron Alderton
Contact phone number +64 22 394 5785
Contact email address cameron@glassons.com
Date of release through MAP
26/09/2025
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
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HALLENSTEIN GLASSON HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 1 AUGUST 2025
Sales Revenue
Cost of Sales
Gross Profit
Other Operating Income
Selling Expenses
Distribution Expenses
Administration Expenses
Total Expenses
Operating Profit
Finance Income
Finance Expense
Profit Before Income Tax
Income Tax Expense
Net Profit after Tax attributable to the Shareholders
of the Holding Company
Other Comprehensive Income
-Items that will not be reclassified to profit or loss
FairValue (Loss)/Gain (net oftax) on Revaluation of Land and Buildings
-Items that may be subsequently reclassified to profit or loss
Fair Value (Loss)/Gain (net of tax) in Cash Flow Hedge Reserve
Movement in Foreign Currency Translation Reserve
Total Comprehensive Income for the year attributable to the Shareholders
of the Holding Company
Earnings Per Share
Basic Earnings per Share
Diluted Earnings per Share
Note
2.1
2.1
2.2
2.1
2.1, 2.2
6.1
2.1
6.1
6.1
2.4
2.4
2025
$'000
470,740
(191,476)
279,264
475
(161,183)
(16,959)
(40,565)
(218,707)
61,032
2,035
(4,689)
58,378
(18,917)
39,461
(20)
(635)
265
39,071
66.2
66.1
2024
$'000
435,635
(176,904)
258,731
353
(152,844)
(15,552)
(36,392)
(204,788)
54,296
1,957
(4,168)
52,085
(17,599)
34,486
(421)
(63)
34,002
57.8
57.8
The Notes to the Consolidated Financial Statements form an integral part of and are to be read in conjunction with these Consolidated Financial Statements.
1
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2
Note2025
2024
$'000
$'000
5.129,279
29,279
26,085
26,105
301
936
265-
37-
55,928
46,887
111,895
103,207
3.158,333
45,915
366
407
732
847
3,646
5,841
3.231,274
27,484
7.51,062
1,317
95,413
81,811
4.262,155
58,779
4.163,785
67,029
4.33,020
3,080
1,273
993
6.25,570
7,323
135,803
137,204
231,216
219,015
11,341
9,828
7.19,877
8,928
18,448
15,400
4.126,680
26,691
7.5639
2
2,376
2,466
69,361
63,315
H
ALL ENST EIN GLASSON HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 1 AUGUST 2025
Equity
Contributed Equity
Asset Revaluation Reserve
Cash Flow Hedge Res
erve
Foreign Currency Translation Reserve
Share
Option Reser ve
Retained Earnings
Total Equity
Repre sented by
Current Assets
Ca sh and Cas
h Equivalents
Trade and Other Receivables
Ad vances to Emplo yees
Prepa yments
In ventories
Derivative Financial Instru ments
Total Current Assets
Non-Current Assets
Property, Plant and Equipment
Right-of-use Assets
In ve st ment Property
Intangible Ass ets
Deferred Tax
Total Non-Current Assets
Total Assets
Current Liabilities
Trade Pay
ables
Employ
ee Benefits
Other Payables
Lea se Liabilities
Derivative Financial Instru ments
Ta xation Payable
Total Current Liabilities
Non-Current Liabilities
Lea se Liabilities
4.149,960
52,493
______________________________Director ______________________________Director Date 26 September 2025
Total Liabilities 119,321
115,808
Net Assets 111,895
103,207
The Notes to the Consolidated Financial Statements form an integral part of and are to be read in conjunction with these Consolidated Financial
Statements. The Consolidated Financial Statements are signed for and on behalf of the Board and were authorised for issue on 26 September 2025.
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HALLENSTEIN GI-ASSON HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 1 AUGUST 2025
Share capital
Treasury
Asset
cash Row Share Option
Foreign
Retained Total Equity
Stock
Revaluation
Hedge Reserve
Currency
Earnings
Reserve Reserve Translation
Note
Reserve
$000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 August 2023 29,279
(1,139)
26,526
999
294 40,717
96,676
Comprehensive Income
Profit for Year
34,486 34,486
Revaluation net ofTax
6.1
(421) (421)
Cash Flow Hedges net ofTax
6.1
(63)
(63)
Total Comprehensive Income
(421)
(63)
34,486
34,002
Transactions with Owners
Sale ofTreasury Stock
5.1, 5.2
141 141
Di.;dends
2.3, 5.1
29
(28,632) (28,603)
Increase in Share Option Reserve
43 43
Share Options Exercised
5.1
948
948
Transfer of Share Option Reserve to Retained
Earnings
(337)
337
(Gain)/ Loss on Sale ofTreasury Stock
transferred to Retained Earnings
5.1
21
(21)
Total Transactions with Owners
1,139
(294)
(28,316)
(27,471)
Balance at 1 August 2024 29,279
26,105
936
46,887
103,207
Comprehensive Income
Profit for Year
39,461 39,461
Revaluation net ofTax
6.1
(20) (20)
Cash Flow Hedges net ofTax
6.1
(635)
(635)
Foreign Currency Translation Reserve
265 265
Total Comprehensive Income
(20)
(635)
265
39,461
39,071
Transactions with Owners
Dii,;dends
2.3
(30,420) (30,420)
Increase in Share Option Reserve
37 37
Total Transactions with Owners
37
(30,420) (30,383)
Balance at 1 August 2025 29,279
26,085
301
37
265
55,928 111,895
The Notes to the Consolidated Financial Statements form an integral part of and are to be read in conjunction with these Consolidated Financial Statements.
3
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HALLENSTEIN GI-ASSON HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 1 AUGUST 2025
Cash Flows from Operating Activities
Cash was provided from:
Sales to Customers
Rent Received
Interest Income
Interest on Debtors
Cash was applied to:
Payments to Suppliers
Payments to Employees
Interest Paid on Leases
Taxation Paid
Net Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash was provided from:
Proceeds from Sale of Property, Plant and Equipment and Intangible Assets
Repayment of Employee Mvances
Cash was applied to:
Purchase of Property, Plant and Equipment and Intangible Assets
Net Cash Flows applied to Investing Activities
Cash Flows from Financing Activities
Cash was provided from:
Sale ofTreasury Stock and Dividends
Cash was applied to:
Dividend Paid
Lease Liability Payments
Net Cash Flows applied to Financing Activities
Net lncrease/(Decrease) in Funds held
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Note
2.2
2.1
2.1
2.2
4.2
5.1, 5.2
2.3
4.1
3.1
2025
2024
$'000
$'000
471,282
435,154
231
248
2,031
1,951
4
6
473,548
437,359
278,908
252,304
84,356
78,808
4,689
4,168
16,990
16,769
384,943
352,049
88,605
85,310
89
168
115
261
204
429
15,830
15,944
15,830
15,944
(15,626)
(15,515)
170
---------
170
30,420
28,632
30,141
27,896
60,561
56,528
(60,561)
(
56,358)
12,418
13,437
45,915
32,478
58,333
45,915
The Notes to the Consolidated Financial Statements form an integral part of and are to be read in conjunction with these Consolidated Financial Statements.
4
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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
RECONCILIATION OF PROFIT AFTER TAXATION
TO CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit after Taxation
Add/ (deduct) items classified as Investing or Financing activities
Loss/(Gain) on Sale of Plant and Equipment
Add/ (deduct) Non Cash Items
Depreciation and Amortisation
Gain on Termination of Lease
Net Fair Value Loss on Investment Property
Deferred Taxation
Share Option Expense
Foreign Currency Translation Reserve
Add/ (deduct) movements in Working Capital Items
Taxation Payable
Trade and Other Receivables and Prepayments
Trade and Other Payables, Employee Benefits and Other Working Capital
Inventories
Net Cash Flows from Operating Activities
Note
2.2
2.2
2.2
2.2
6.2
2025
2024
$'000
$'000
39,461
34,486
2
528
40,629
38,516
(112)
60
128
2,017
(1,045)
37
43
265
(90)
1,876
2,236
(499)
7,778
7,868
(3,790)
3,521
88,605
85,310
The Notes to the Consolidated Financial Staterrents form an integral part of and are to be read in conjunction with these Consolidated Financial Staterrents.
5
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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
1. Basis of preparation
This section presents a summary of information considered relevant and material to assist the reader in understanding the
foundations on which the financial statements as a whole have been compiled. Material accounting policies specific to notes
shown in other sections are disclosed in a shaded box and are included as part of that particular note.
1.1 General information
Reporting entity
Hallenstein Glasson Holdings Limited ("Company" or "Parent") together with its subsidiaries (the "Group") is a retailer of men's
and women's clothing in New Zealand and Australia.
The Company is a limited liability company incorporated and domiciled in New Zealand. The address of its registered office
is Level 3, 235-237 Broadway, Newmarket, Auckland.
Statutory base
Hallenstein Glasson Holdings Limited is a company registered under the Companies Act 1993 and is a FMC reporting entity
under Part 7 of the Financial Markets Conduct Act 2013. The Company is also listed on the New Zealand Stock Exchange
(NZX). The financial statements of the Group have been prepared in accordance with the requirements of Part 7 of the
Financial Markets Conduct Act 2013 and the NZX Main Board Listing Rules.
The financial statements were approved for issue by the Board of Directors on 26 September 2025.
6
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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
1.2 General accounting policies
Statement of compliance
These financial statements for the year ended 1 August 2025 have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (GAAP). They comply with New Zealand equivalents to International Financial
Reporting Standards (NZ IFRS), other New Zealand accounting standards and authoritative notices that are applicable to
entities that apply NZ IFRS. The financial statements comply with International Financial Reporting Standards Accounting
Standards (IFRS Accounting Standards).
Basis of preparation of financial statements
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the periods presented, unless otherwise stated.
The reporting currency used in the preparation of these financial statements is New Zealand dollars, rounded where
necessary to the nearest thousand dollars.
Entities reporting
The financial statements are the Consolidated Financial Statements of the Group comprising Hallenstein Glasson
Holdings Limited and its subsidiaries, together they are referred to in these financial statements as 'the Group'. The
parent and its subsidiaries are designated as for-profit entities for financial reporting purposes.
Principles of consolidation
Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They
are deconsolidated from the date that control ceases.
lntercompany transactions, balances and unrealised gains and losses on transactions between Group companies are
eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the Group.
Investments in subsidiaries
Principal Subsidiaries
Hallenstein Bros Limited
Hallensteins Australia Pty Limited
Glassons Limited
Glas sons Australia Pty Limited
Hallenstein Properties Limited
Interest held by parent
and group
2025 2024
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
7
Principal activities
Retail of menswear in New Zealand
Retail of menswear in Australia
Retail of womenswear in New Zealand
Retail of womenswear in Australia
Property ownership in New Zealand
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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of
investment property, land and buildings and certain financial assets and liabilities (including derivative instruments) measured
at fair value.
Climate related risks
Transactions and balances
As part of its risk management framework, the Group continues to monitor its exposure to risk, including climate related risks
and regulatory related reporting requirements. For the year ended 1 August 2025, the Group completed its second climate
related risk assessment in accordance with the Aotearoa New Zealand Climate Standards. Based on this assessment, no
climate-related risks or opportunities were identified that have a material impact on the financial statements, and there are no
specific disclosures to note. The identified climate related risks and opportunities including both physical and transitional
impacts have been considered as part of the below critical accounting estimates, judgements and assumptions.
Our Climate Related Disclosure will be published by the end of November 2025 on our website -
https:/lwww.hallensteinglasson.co.nz/climate-related-disclosures.
Critical accounting estimates, judgements and assumptions
The preparation of financial statements in conformity with NZ IFRS and IFRS Accounting Standards require the use of certain
critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's
accounting policies.
Property, plant and equipment/Right of use Assets: The Group has assessed whether the carrying value of its property, plant
and equipment and right of use assets have suffered any impairment since they were acquired. The recoverable amounts of
cash generating units (at a store level) have been determined based on value in use calculations. These calculations require the
use of estimates and projections of future operating performance.
Inventory provision: The Group assessed the inventory provision using management judgement which considers a range of
factors including the review of historical data, the age of inventory and current selling price trends to determine the
appropriateness of the provision.
Revaluation of Land and Buildings: The fair value of the Group's land and buildings is determined by the Board following an
independent valuation undertaken at least every three years. The basis of the valuation is assessed within a range indicated by
two valuation approaches: discounted cash flow analysis and an income capitalisation approach. The key assumptions are
disclosed in note 4.2.
Revaluation of Investment Property: The fair value of the Group's investment property is determined by the Board following
an independent valuation undertaken annually. The basis of the valuation is assessed within a range indicated by two valuation
approaches: discounted cash flow analysis and an income capitalisation approach. The key assumptions are disclosed in note
4.3.
Foreign currency translation
Functional and presentation currency
Items included in the financial statements for each of the Group's operations are measured using the currency of the primary
economic environment in which it operates ('the functional currency'). The financial statements are presented in New Zealand
dollars, which is the Group's presentational currency.
Effective 2 August 2024, Glassons Australia and Hallensteins Australia, previously registered as branches in Australia, became
separate companies registered with the Australian Securities and Investments Commission (ASIC) under Part 5B.1 of the
Corporations Act 2001 (Cth) (Australia). As a result, the Group now has two operating subsidiaries in Australia.
As part of the domiciliation of these companies, the functional currency of the Australian branches/subsidiaries have been
reassessed. Over time there has been a gradual change in operations in Australia which has culminated in converting the
branches to subsidiaries as noted above. Management has further determined that a change in functional currency from New
Zealand Dollars (NZD) to Australian Dollars (AUD) upon the restructuring of the Australian branches on the 2 August 2024 is
appropriate.
8
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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
The results and financial position of all the Group entities that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
• Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;
• Income and expenses for each statement of comprehensive income are translated at average exchange rates; and
• All resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and other
currency instruments designated as hedges of such investments, are taken to other comprehensive income.
2. Performance
2.1 Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the Board of Directors. The
Board of Directors is the chief operating decision maker and is responsible for allocating resources and assessing
performance of the operating segments and they delegate that authority through the Group Chief Executive Officer.
The Board of Directors considers the business from both a product and geographic perspective as follows:
Hallensteins (Hallensteins Ltd (New Zealand) and Hallensteins Australia Pty Limited (Australia))
Glassons Limited (New Zealand)
Glassons Australia Pty Limited (Australia)
Hallenstein Properties Limited - Property (New Zealand)
Hallenstein Glasson Holdings Limited - Parent (New Zealand)
The reportable segments derive their revenues primarily from the retail sale of clothing. The revenues from external parties
reported to the Board of Directors are measured in a manner consistent with that in the consolidated statement of comprehensive
income. There are no material revenues derived from a single external customer.
9
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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
Segment results
Glassons
New
Glassons
For the year ended 1 August 2025
Zealand
Australia Hallensteins Property
Parent
Total Group
$000's $000's $000's $000's $000's $000's
INCOME STATEMENT
Segment Revenue
123,487 252,849
108,632
1,142
486,110
lntercompany Segment Revenue
(11,575) (1,325) (1,328)
(1,142)
(15,370)
Sales Revenue from External Customers
111,912 251,524 107,304
470,740
Cost of Sales
(48,679) (96,839) (45,958)
(191,476)
Finance Income
379
946 564
146
2,035
Finance Expense
(1,360) (2,058) (1,242)
(29)
(4,689)
Depreciation and Amortisation
(11,338)
(19,127)
(9,527)
(525)
(112)
(40,629)
Profit/(Loss) before Income Tax
19,162
34,217
4,755
324
(80)
58,378
Income Tax (Expense)/Benefit
(5,719) (11,742) (1,451)
(23)
18
(18,917)
Net Profit/(Loss) after Income Tax
13,443
22,475
3,304
301
(62)
39,461
STATEMENT OF RNANCIAL POSITION
Current A5sets
27,998 35,834 21,090
6,659
3,832
95,413
Non-Current A5sets
40,427
46,943
28,144 20,289
135,803
Current Liabilities
18,328
34,876
15,499
316
342
69,361
Non-Current Liabilities
15,773 19,946
14,241
49,960
Purchase of Property, Plant and Equipment and
Intangible A5sets
4,509 7,037
4,214
70
15,830
Glassons
New
Glas sons
For the year ended 1 August 2024
Zealand
Australia
Hallensteins
Property
Parent
Total Group
$000's $000's $000's $000's $000's $000's
INCOME STATEMENT
Segment Revenue
120,303
219,440
108,359
1,002
449,104
lntercompany Segment Revenue
(10,241)
(1,317)
(909)
(1,002)
(13,469)
Sales Revenue from External Customers
110,062 218,123
107,450
435,635
Cost of Sales (49,191)
(83,862)
(43,851)
(176,904)
Finance Income
348
721
718 170
1,957
Finance Expense
(1,415)
(1,625) (1,105)
(23)
(4,168)
Depreciation and Amortisation
(11,143)
(16,593)
(10,166)
(524)
(90)
(38,516)
Profit/(Loss) before Income Tax 15,039 29,466
7,479
258
(157)52,085
Income Tax(Expense)/Benefit
(4,255)
(9,969)
(2,141) (1,278)
44
(17,599)
Net Profit/(Loss) after Income Tax
10,784 19,497
5,338
(1,020) (113)
34,486
STATEMENT OF FINANCIAL POSITION
Current A5sets
24,170 26,072
22,052
6,010
3,507
81,811
Non-CurrentA5sets
40,704
53,510
22,253
20,737 137,204
Current Liabilities
16,600
30,969 15,360
396
(10)
63,315
Non-Current Liabilities
17,535
25,785
9,173
52,493
Purchase of Property, Plant and Equipment and
Intangible A5sets
3,774
8,029
4,131
10
15,944
10
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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
2.2 Income and expenses
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services, excluding
Goods and Services Tax, net of rebates and discounts and after eliminating sales within the Group.
Revenue is recognised as follows:
Sales of goods -retail
Sales of goods are recognised when a Group entity has delivered a product to the customer. For in-store sales, control
passes to the customer at the point of sale. For online sales, the order and the delivery to the customer are considered to
comprise a single performance obligation, therefore control passes to the customer when the goods are delivered. Retail
sales are usually in cash, credit card, debit card or by various pay later services. The recorded revenue is the gross amount
of sale (excluding GST), including credit card fees and service fees payable for the transaction. Such fees are included in
selling expenses.
The Group offers customers the option of purchasing gift cards. This is considered deferred revenue until such time where
the customer redeems the gift card on future purchases. A contract liability for the purchase of a gift card is recognised at the
time of the sale. Revenue is recognised when the gift card is redeemed, or, for the portion not expected to be redeemed
(breakage), in line with expected redemption patterns, with any remaining balance recognised when they expire.
As at 1 August 2025, the gift card liability balance recognised under "Other payables" was $2.47M (2024: $2.22M, 2023:
$2.61M).
Interest income
Interest income is recognised using the effective interest method.
Rental income
Rental income from operating leases (net of any incentives) is recognised on a straight-line basis over the lease term.
11
--
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
Income and expenses
Profit before income tax includes the following specific income and expenses:
Other Operating Income
Rental Income
Insurance Proceeds
Expenses
Occupancy Costs
Auditor's Remuneration
Audit of Financial Statements - PwC New Zealand
Other Services - Performed by PwC Australia
1
Directors' Fees
Wages, Salaries and other Short Term Benefits
Depreciation of Property, Plant & Equipment
Depreciation of Right of Use Assets
Amortisation of Software
Total Depreciation and Amortisation
Net Fair Value Loss on Investment Property
Interest on Leases
Gain on Termination of Lease
Loss/(Gain) on Disposal of Property, Plant and Equipment
1
Amount paid in respect of tax compliance and tax advisory services provided in Australia.
12
Group
2025
$000
231
244
9,514
337
718
85,305
11,504
28,526
599
40,629
60
4,689
2
2024
$000
248
105
9,355
249
18
698
80,753
11,415
26,604
497
38,516
128
4,168
(112)
528
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
2.3 Dividends
Provision is made for the amount of any dividend declared on or before the balance date but not distributed at balance date.
2025
cents per
Share
Final dividend for the year ended 1 August 2024
26.50
Interim dividend for the year ended 1 August 2025
24.50
Final dividend for the year ended 1 August 2023
Interim dividend for the year ended 1 August 2024
Total
51.00
2024
cents per
Share
24.00
24.00
48.00
2025
$000's
15,806
14,614
30,420
2024
$000's
14,316
14,316
28,632
Dividends paid were partially imputed. Supplementary dividends of $244,972 (2024: $177,160) were paid to shareholders not
resident in New Zealand for tax purposes for which the Group received a foreign investor tax credit.
2.4 Earnings per share
Basic and diluted earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of ordinary shares outstanding during the period, adjusted for bonus elements in ordinary shares
issued during the period.
Basic
Basic earnings per share is calculated by dividing the profit after tax of the Group by the weighted average number of ordinary
shares outstanding during the year.
Diluted
Diluted earnings per share is calculated by adjusting profit after tax and the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares. The Group has granted shares under a Long-Term
Incentive Plan (L TIP) during the financial year. These are considered potential ordinary shares and included in the calculation
of diluted earnings per share. The impact of these potential shares is to increase the weighted average number of shares
outstanding by 36,873 in 2025 (2024: Nil). Subsequent to the end of the financial year, these L TIP shares have lapsed and will
not result in the issuance of ordinary shares.
Profit after tax
Weighted average number of ordinary shares outstanding
Basic earnings per share (cents per share)
Effect of L TIP share scheme diluted weighted average number of shares
Diluted earnings per share (cents per share)
13
2025
2024
$000's
$000's
39,461
34,486
59,649
59,649
66.2
57.8
37
66.1
57.8
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
3. Working Capital
3.1 Cash and cash equivalents
Cash and cash equivalents include cash at bank, cash on hand, EFTPOS (electronic funds transfer point of sale)
transactions which have not been cleared by the bank at balance date, deposits held at call with financial institutions,
other short-term highly liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
Consolidated Statement of Cash flows
The following are the definitions of the terms used in the consolidated statement of cash flows:
(I.) Cash comprises cash and cash equivalents.
(II.) Investing activities are those activities relating to the acquisition, holding and disposal of property, plant and equipment,
investments and employee advances.
(Ill.) Financing activities are those activities which result in changes in the size and composition of the capital structure of
the Group. This includes lease payments, equity and debt not falling within the definition of cash. Dividends paid are
included in financing activities.
(IV.) Operating activities include all transactions and other events that are not investing or financing activities.
Cash and cash equivalents
2025
2024
$000's
$000's
Cash at Bank
56,641
44,470
Short Term Bank Deposits
1,604
1,364
Cash on Hand
88
81
Total Cash and Cash Equivalents
58,333
45,915
The carrying amount of cash and cash equivalents equals the fair value.
3.2 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average method
and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. Net
realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses,
excluding borrowing costs. The Group assesses the likely net residual value of inventory. Stock provisions are recognised for
inventory which is older than two years and for inventory which is expected to sell for less than cost. Management will also
use their judgement to assess whether any further provisions are required based on style performance, current trends and
specific product information from buyers.
2025
2024
$000's
$000's
Finished goods
31,479
27,659
Inventory adjustments
(
205
)
(175)
Net inventories 31,274
27,484
Inventory adjustments are provided at year end for stock obsolescence within cost of sales in the Consolidated Statement of
Comprehensive Income. The cost of inventories recognised as an expense and included in cost of sales amounted to
$189,677,388 (2024: $176,649,177).
14
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
4. Long term Assets
4.1 Leases
Right-of-use assets and lease liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
include the net present value of the remaining lease payments.
Right-of-use assets are initially recognised on commencement of lease at cost, comprising the initial amount of the lease
liabilities less any lease incentives received. Right-of-use assets are subsequently depreciated using the straight-line method
from the commencement date to the end of the lease term.
The Group leases retail stores under non-cancellable operating leases expiring within one to six years. There is a small
portion of lease contracts which contain renewal rights. In considering the lease term for these contracts, the Group has
determined that rights of renewals are not reasonably certain to be exercised due to the nature and location of the stores and
the changing retail environment. It is the Group's strategy to renegotiate the terms of all leases at their expiry instead of
exercising renewal rights. This agile strategy is enabled by having stores relatively small in size and not highly customised,
and therefore relatively straight forward to move locations. In addition, with the current retail market uncertainty the Group
needs to maintain a degree of flexibility.
Both right-of-use assets and lease liabilities are discounted applying the interest rate implicit in the lease. If that rate cannot
be determined, the lessee's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow
the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.
Short term leases where the Group is the lessee
Leases in which a material portion of the risks and rewards of ownership are retained by the lessor are classified as operating
leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the profit or
loss in the Consolidated Statement of Comprehensive Income on a straight line basis over the period of the lease.
The Group is the lessor
Assets leased to third parties under operating leases are included in Investment Property in the Consolidated Statement of
Financial Position. Rental income (net of any incentives given to lessees) is recognised on a straight line basis over the lease
term. Lease receivables are disclosed under Note 4.3.
The following tables show the movements and analysis in relation to the right-of-use assets and lease liabilities.
Right-of-use assets
Opening net book value
Depreciation
Modifications and additions
Lease Terminations
FX impact
Carrying
amount
Lease liabilities
Opening lease liabilities
Lease modifications and additions
Interest for the period
Lease payments made
Lease Terrrinations
FXimpact
Closing Lease liabilities
15
2025
$000
67,029
(
28,526)
25,267
15
6
3
,785
2025
$000
79,184
27,619
4,689
(
3
4,8
3
0)
{22}
76,640
2024
$000
65,285
(26,604)
30,253
(2,104)
199
67,029
2024
$000
76,325
32,724
4,168
(32,064)
(2,216)
247
79,184
--
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
Lease liabilities maturity analysis for the year ended 1 August 2025
Due within one year
One to two years
Two to five years
Later than five years
Total
Current
Non-current
Total
Lease liabilities maturity analysis for the year ended 1 August 2024
Due within one year
One to two years
Two to five years
Later than five years
Total
Current
Non-current
Total
Minimum
lease
payments
$000'5
30,427
22,309
30,014
2,737
85,487
Minimum
lease
payments
$000's
30,354
24,640
30,225
2,267
87,486
Lease related expenses included in the consolidated statement of comprehensive income:
Depreciation
Rent on short-term leases
Gain on lease termination
Interest on leases
Total
Lease payments included in the consolidated statement of cash flows:
Interest paid on leases (operating activities)
Payments for lease liabilities principal (financing activities)
Total cash outflows from leases
Lease commitments
Present
Interest
value
$000'5 $000'5
(3,747) 26,680
(2,446)
19,863
(2,368)
27,646
(286)
2,451
(8,847)
76,640
26,680
49,960
76,640
Interest Present value
$000's $000's
(3,663)
26,691
(2,413)
22,227
(2,143)
28,082
(83)
2,184
(8,302)
79,184
26,691
52,493
79,184
2025
2024
$000
$000
28,526
26,604
9,514
9,355
(112)
4,689
4,168
42,729
40,015
2025
2024
$000
$000
4,689
4,168
30,141
27,896
34,830
32,064
The Group currently has no non-cancellable short-term operating lease agreements as at 1 August 2025 (2024: $Nil).
16
--
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
4.2 Property, plant and equipment
Recognition and measurement
Land and buildings located in Napier were valued on 1 August 2025 by CBRE Limited, Land and buildings located in East Tamaki
and Christchurch were valued on 1 August 2024 by Fordbaker Valuation Limited and Colliers International respectively,
(collectively "the valuers"), who are independent registered valuers and associates of The New Zealand Institute of Valuers. The
valuers have recent experience in the location and category of the item being valued. The fair values of the assets represent
the estimated price for which a property could be sold on the date of valuation in an orderly transaction between market
participants.
The adopted valuation has been assessed within a range indicated by two valuation approaches: Income capitalisation approach
and discounted cash flow analysis. These valuation approaches and the key assumptions used by the valuers to arrive at fair
value have been summarised in Note 4.3.
At each reporting date, where an external valuation report is not obtained the most recent valuation reports are reviewed by the
management team. Valuations are performed with sufficient regularity to ensure that the fair value does not differ materially from
its carrying amount. Confirmation was obtained from the valuers that the valuations from 1 August 2024 were still appropriate as
at 1 August 2025.
Land and building measurements are categorised as Level 3 in the fair value hierarchy. During the year there were no transfers
between levels of the fair value hierarchy.
Both the income capitalisation approach and discounted cash flow analysis contain unobservable inputs in determining fair
value. These have been disclosed in the 2024 Annual Report which can be accessed via the website:
https://www.hallensteinglasson.co.nz/annual-report
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably.
Increases in the carrying amount arising on revaluation of land and buildings are credited to other comprehensive income and
shown as an asset revaluation reserve in shareholders' equity. Decreases that offset previous increases of the same asset are
charged in other comprehensive income and debited against the asset revaluation reserve directly in shareholders' equity; all
other decreases are charged to the profit or loss in the consolidated statement of comprehensive income.
All other property, plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items. This cost includes labour attributable to bringing
the assets to the location and working condition for its intended use.
Depreciation
Land is not depreciated. Depreciation on other assets is calculated using the straight line method to allocate their cost, net of
their residual values, over their estimated useful lives, as follows:
Buildings
Plant & equipment
Furniture & fittings
67 years
2 - 5 years
5 - 10 years
The assets' residual values and useful lives are reviewed, and adjusted if appropriate at each balance date.
Impairment
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than
its estimated recoverable amount. Assets that are subject to depreciation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable, for example a planned store closure,
withdrawal from a business segment, or assessment of loss-making stores. Assets are grouped at the lowest levels for which
there are separately identifiable cash flows; a store's assets is the relevant cash generating unit. If, in a subsequent period, the
amount of the impairment loss decreases and it can be related objectively to an event occurring after the impairment was
recognised, the reversal of the previously recognised impairment loss is recognised in the consolidated statement of
comprehensive income.
17
--
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
Impairment (continued)
The value in use calculation evaluates recoverability based on the stores' forecasted discounted cash flows, which incorporate
estimated sales, margin & expense growth based upon current plans for the store. Key assumptions in the determination of
recoverable amount are:
• the estimate of future cash flows of the store incorporating reasonable sales growth and margin improvement; and
• the discount rate incorporating the rates of return based on the risk and uncertainty inherent in the forecast cash flows.
The Group has performed an assessment to determine whether there is any sensitivity to changes in key assumptions.
As a result of the sensitivity analysis and impairment testing performed, it was determined that no material risks of impairment
existed as at 1 August 2025 (2024: $Nil).
Disposal
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the
Consolidated Statement of Comprehensive Income.
Year ended 1 August 2025
Land at fair
Buildings at
Fixtures &
Plant&
$000's
value
fair value Fittings
Equipment
TOTAL
Opening NBV 11,235
18,636
22,353
6,555
58,779
Additions
70
9,735
5,108
14,913
Disposals
(65)(60)
(125)
Depreciation
(615)(7,725)
(3,164)
(11,504)
Revaluations
(28)(28)
FXlmpact
89
31
120
Closing NBV 11,235
18,063
24,387
8,470
62,155
CosWaluation
11,235
18,616
82,536
33,840
146,227
Accumulated depreciation
(553)
(58,238)
(25,401)
(84,192)
FXlmpact
89
31
120
Closing NBV 11,235
18,063
24,387
8,470
62,155
Year ended 1 August 2024
Land at fair
Buildings at
Fixtures &
Plant&
$000's
value
fair value
Fittings
Equipment
TOTAL
Opening NBV
11,025
20,138 19,789
5,415
56,367
Additions
10,562
4,593
15,155
Disposals
(308)
(354)(662)
Depreciation
(626)
(7,690)
(3,099)
(11,415)
Revaluations
210
(876)
(666)
Closing NBV
11,235
18,636
22,353
6,555 58,779
CosWaluation
11,235
18,636
76,709
29,630 136,210
Accumulated depreciation
(54,356)
(23,075)
(77,431)
Closing NBV 11,235
18,636
22,353
6,555
58,779
18
--
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
If land and buildings were stated on a historical cost basis, the amounts would be as follows:
Land
Buildings
Cost
Accumulated depreciation
Net book amount
4.3 Investment Property
Recognition and measurement
2025
$000's
4,270
12,862
17,132
{3,250)
13,882
2024
$000's
4,270
12,792
17,062
(2,993)
14,069
Investment property consists of a portion of land and buildings for the purpose of retail. Land and buildings were valued on 1 August
2025 by Telfer Young (Hawkes Bay) Limited ("the valuer'') who are independent registered valuers and associates of The New
Zealand Institute of Valuers. The valuer has recent experience in the location and category of the item being valued. The fair
values of the assets represent the estimated price for which a property could be sold on the date of valuation in an orderly
transaction between market participants.
The adopted valuation has been assessed within a range indicated by two valuation approaches: Income capitalisation approach
and discounted cash flow analysis.
The following table summarises the valuation approach and key assumptions used by the valuers to arrive at fair value.
Valuation aooroach
Description of the valuation aooroach
Income Capitalisation
A valuation methodology which determines fair value by capitalising a property's
Approach
sustainable net income at an appropriate, market derived capitalisation rate (yield).
Unobservable inputs within the income capitalisation approach include:
a) Net Market Rent which is the annual amount for which a tenancy within a
property is expected to achieve under a new arm's length leasing transaction
after deducting a fair share of property operating expenses.
b)
Capitalisation Rate (yield) which is the rate of return, determined through analysis
of comparable, market related sales transactions which is applied to a property's
sustainable net income to derive value.
Discounted Cash Flow analysis
With the discounted cash flow analysis, a cash flow budget is established for the property
over a ten-year time horizon. Within the cash flow an allowance is made for rental growth
as well as deducting costs associated with property ownership. A terminal value is also
estimated and the cash flows are discounted at a market rate to arrive at a net present
value.
Unobservable inputs within the discounted cash flow analysis include:
a) The discount rate which is the rate determined through analysis of comparable
market related sales transactions which is applied to a property's future net cash
flows to convert those cash flows into a present value.
b)
The terminal capitalisation rate which is the rate which is applied to a property's
sustainable net income at the end of an assumed holding period to derive an
estimated market value.
c)
Rental growth rate which is the annual growth rate applied to market rent over an
assumed holding period.
d)
Expenses growth which is the annual amount applied to property operating
expenses over an assumed holding period.
The loss of $60,000 on the fair value revaluation of Investment Property was recognised as an operating expense in the
Consolidated Statement of Comprehensive Income (2024: $128,000). Subsequent revaluation surpluses or losses will be
recognised through the Consolidated Statement of Comprehensive Income.
19
--
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
Land and building measurements are categorised as Level 3 in the fair value hierarchy. During the year there were no transfers
between levels of the fair value hierarchy.
Both the income capitalisation approach and discounted cash flow analysis contain unobservable inputs in determining fair value.
These are summarised in the table below:
Range of significant unobservable inputs
Class of property
Land and Buildings -
Retail and Investment
Property
Inputs used to measure
fair value
Net Market Rent
Rental growth rate
Capitalisation rate (yield)
Discount Rate
Terminal Capitalisation Rate
Expenses growth
2025
$327 per m2
1.50% -2.00%
6.97%
7.92%
6.72%
1.80% -2.0%
2024 Sensitivity
$355 per m2
2.00% -2.50%
6.76%
7.89%
7.50%
The higher the market rent
and growth rate, the higher
the fair value
The higher the capitalisation
rates and discount rate, the
lower the fair value.
The higher the expenses, the
2.0% -3.0%
lower the fair value.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured
reliably.
Investment Property
2025
2024
$000's
$000's
Opening balance
3,080
3,208
Net loss from fair value adjustment
(60)
(128)
Closing balance
3,020
3,080
Lease receivables:
The Group owns rental property that it leases under non-cancellable operating lease agreements to external parties. Leases reflect
normal commercial arrangements with varying terms and renewal rights.
The future minimum rental payments receivable under these leases is as follows:
Due within one year
One to two years
Two to five years
Total lease receivables
20
2025
$000's
150
150
374
674
2024
$000's
83
83
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
5. Equity
5.1 Share capital
Ordinary shares are classified as capital, net of treasury stock.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from
the proceeds.
Treasury stock
Under the legacy executive share scheme, shares purchased on-market were initially recognised as treasury stock at cost. On
vesting to employees, treasury stock was credited to equity and an employee loan was recorded, initially at fair value and
subsequently measured at amortised cost.
As at 1 August 2025, the scheme has no treasury stock remaining, with employees continuing to repay outstanding loans
through the application of dividends on the shares held.
No treasury stock is held in relation to the current Long-Term Incentive Plan, as equity awards are satisfied through an award
of new shares if certain performance conditions are met.
Reserves
The asset revaluation reserve records revaluations of land and buildings classified as property, plant and equipment, net of tax.
The cash flow hedge reserve records the fair value of derivative financial instruments, net of tax that meet the hedge accounting
criteria. The Share Option reserve is used to record the accumulated value of unvested share rights arising from the executive
share scheme which have been recognised in the consolidated statement of changes in equity. The foreign currency translation
reserve is used to record foreign currency translation differences arising on the translation of the Group entities results and
financial position. The amounts are accumulated in other comprehensive income until disposal of the foreign operation.
Contributed Equity
Balance at beginning of year
Sale of Treasury Stock
Dividends
Share Options Exercised
Loss/(Gain) on sale of Treasury Stock transferred to Retained
Earnings
Balance at end of year
Representing:
Share Capital
Treasury Stock (net of Dividends)
Total
All shares are fully paid and rank equally.
2025
Shares
59,649,061
59,649,061
59,649,061
59,649,061
21
2024
Shares
59,452,061
25,000
172,000
59,649,061
59,649,061
59,649,061
2025
$000's
29,279
29,279
29,279
29,279
2024
$000's
28,140
141
29
948
21
29,279
29,279
29,279
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
5.2 Executive Share Scheme
Equity-settled share-based compensation benefits were historically provided to certain employees under the Group's executive
share scheme. The fair value of share rights granted was recognised as an employee benefit expense with a corresponding
increase in equity, measured at grant date and expensed over the vesting period using a Black Scholes pricing model.
The scheme involved the purchase of shares on-market funded by limited recourse, interest-free loans provided by the
Company. Shares were held by directors as custodians and dividends on the shares were applied to repay the loans. Shares
vested after three years, subject to continued employment. On vesting, the share option reserve was transferred to retained
earnings.
This scheme is now closed to new participation, with no treasury stock remaining. Employees continue to repay outstanding
loans through dividends on the shares held. No shares were issued during the 2025 financial year (2024: Nil).
Current Long-Term Incentive Plan {L TIP)
During the current year, the Group established a new Long-Term Incentive Plan. The Plan provides for both cash-settled
phantom shares and equity-settled awards:
Phantom shares are cash-settled, with entitlements determined by the Company's share price at vesting, based on the volume
weighted average price over a chosen period.
Equity-settled awards are measured at grant-date fair value and recognised as an expense on a straight line basis over the
vesting period. The awards are satisfied through a capital issue of new shares after a three-year vesting period, subject to
performance and service conditions. The issue of new shares results in potential dilution for existing shareholders.
The L TIP is accounted for in accordance with NZ IFRS 2 Share-based Payment.
Cash-settled awards are recognised as a liability and remeasured to fair value at each reporting date, with changes recognised
in the profit or loss in the Consolidated Statement of Comprehensive Income. Equity-settled awards are measured at grant date
fair value and expensed over the vesting period, with a corresponding credit to the Share Option Reserve.
For the year ended 1 August 2025, the Group recognised costs in relation to the Long-Term Incentive Plan (L TIP) in
accordance with NZ IFRS 2 Share-based Payment.
An amount of $37,000 has been recognised as a provision for incentive with a corresponding charge to employee benefits in
respect of cash-settled awards.
In addition, $37,000 has been recognised as a credit to the Share Option Reserve in respect of equity-settled awards, with a
corresponding charge to employee benefits. This reflects the expected settlement of awards through the issue of new shares,
subject to vesting conditions.
Legacy Executive share scheme
Balance at beginning of financial year
Forfeited during the year
Exercised during the year
Balance at end of financial year
22
Year ended 1 August 2025
Year ended 1 August 2024
Average
exercise
Number of price per
shares share option
Average
exercise price
Number of per share
shares
option
197,000
(25,000)
(172,000)
$6.74
$5.62
$6.65
--
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
In accordance with NZ IFRS 2 Share-based Payment, the below amount represents the fair value of equity instruments granted,
measured at the grant date. The total long-term performance right of $222,344 has been determined based on 36,873 shares
granted at a grant date fair value of $6.03 per share.
Long-Term Performance Rights
Grant date Opening balance
2/08/2024
6. Taxation
6.1 Income tax expense
Granted during the
Vested during the Lapsed during the
year
year
year
222,344
Closing balance
222,344
The income tax expense or revenue for the period is the tax payable or receivable on the current period's taxable income
based on the notional income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial
statements and unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets
are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each
jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to
measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial
recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences
if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either
accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases
of investments in operations where the company is able to control the timing of the reversal of the temporary differences and
it is probable that the differences will not reverse in the foreseeable future.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
Goods and Services Tax {GST)
The Consolidated Statement of Comprehensive Income and the Consolidated Statement of Cash Flows have been prepared
so that all components are stated exdusive of GST. All items in the Consolidated Statement of Financial Position are stated net
of GST, with the exception of receivables and payables, which indude GST invoiced.
23
--
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
Income tax expense
The tax expense comprises:
Current tax expense
Prior period adjustment
Deferred tax expense (note 6.2)
- Future tax expense current year
- Prior period adjustment
Total income tax expense
Reconciliation of income tax expense to tax rate applicable to profits
Profit before income tax expense
Tax at 28% (2024: 28%)
Tax effect of:
- Income not subject to tax
- Expenses not deductible for tax
-Adjustment due to different rate in different jurisdictions
- Utilisation of taxlosses by group companies
- Prior period adjustment
- Removal of tax base on buildings
Total income tax expense
The effective tax rate for the year was 32.4% (2024: 33.8%).
2025
2024
$000's
$000's
16,920
17,567
(67)
1,077
128
459
1,936
(1,504)
18,917
17,599
58,378
52,085
16,346
14,584
35
247
245
614
605
(
159)
1,869
(427)
2,557
18,917
17,599
During the financial year, upon re-domiciliation the Group's Australian subsidiaries ceased to be members of the New Zealand
consolidated tax group and are now accounted for as separate subsidiaries. As a result, Australian tax losses became available to
offset against the taxable profits of those subsidiaries. These losses were fully utilised during the year ended 1 August 2025.
Accordingly, no tax losses remain available to carry forward at year end (2024: Nil), and the Group has no unrecognised temporary
differences (2024: Nil).
The tax (charge)/credit relating to components of other comprehensive income are as follows:
2025
2024
$000's
$000's
Before
Tax
Tax
charge
After Tax
Before Tax Tax charge
AflerTax
Fair Value (Loss)/Gains (net of tax) on Revaluation of Land and
(28)
8
(20)
(666)
245
(42
1
)
Buildings
FairValue (Loss)/Gain (net oftax) in Cash Flow Hedge Reserve
(8
9
2)
257
(63
5)
(
91
)
28
(63)
24
--
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
6.2 Deferred tax
Amounts recognised in profit or loss
Depreciation
Provisions and accruals
Right of use assets
Lease liabilities
Amounts recognised directly in equity
Asset revaluation reserve
Cash flow hedges
Total amount recognised
Movements
Balance at beginning of year
Credited/
(
Charged
)
to the Income Statement
Prior period adjustment
Charged to equity
FXimpact
Balance at the end of the year
6.3 Imputation credits
Imputation credits available for subsequent reporting periods
2025
$000's
349
3,376
{20,179)
22,139
5,685
8
(123)
5,570
7,323
(128)
{1,936)
265
46
5,570
2025
$000's
3,592
The above amounts represent the balance of the imputation account as at the end of the reporting period, adjusted for:
•
Imputation credits that will arise from the payment of the provision for income tax;
•
Imputation debits that will arise from the payment of dividends recognised as liabilities at the reporting date; and
•
Imputation credits that will arise from the receipt of dividends recognised as receivables at the reporting date.
25
2024
$000's
2,5
8
3
3,042
(
2
1
,
1
45
)
22,979
7,459
245
(
3
81)
7,323
6,005
(
459
)
1
,504
273
7,323
2024
$000's
3,69
1
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
7. Other
7.1 Employee benefits
Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be
settled within 12 months of the reporting date are recognised in other payables in respect of employees' services up to the
reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for
non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.
Holiday pay accrual and other benefits
7.2 Contingencies
2025
$000's
9,877
2024
$000's
8,928
Contingent liabilities under contracts, guarantees and other agreements arising in the ordinary course of business on which no
loss is anticipated are as follows:
Bank guarantee provided to the New Zealand Stock Exchange Limited
Letters of Credit
2025
$000's
75
2024
$000's
75
Bank letters of credit issued to secure future purchasing requirements are matched to a contingent asset of the same value
representing inventories purchased.
7.3 Capital expenditure commitments
Commitments in relation to store and distribution centre fitouts
7 .4 Related party transactions
2025
$000's
1,863
2024
$000's
986
During the year, the Company advanced and repaid loans to its subsidiaries by way of internal current accounts. In presenting
the financial statements of the Group, the effect of transactions and balances between fellow subsidiaries and those with the
Parent have been eliminated.
The Group undertook transactions with the related interests of the majority shareholder as detailed below:
TC Glasson
Rent payments on retail premises
Balance as at year end - lease liabilities
26
2025
$000
1,478
4,955
2024
$000
1,373
4,143
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
The following Directors received Directors' fees and dividends in relation to shares held personally as follows:
Directors' fees
Dividends
2025
2024
2025
2024
$000
$000
$000
$000
Ms J Appleyard
86
86
MrWJ Bell
145
141
Ms K Bycroft
102
99
Mr M Ford
112
106
5
4
Mr J C Glasson
224
41
Mr TC Glasson
86
86
4,78
9
5,338
Mr G Popplewell
101
94
85
91
Ms S Vincent
86
86
24
22
718
698
5,127
5,496
During the financial year, consulting fees of $14,000 (2024: $10,000) were paid to Karen Bycroft. There was no balance
outstanding as at 1 August 2025 (2024: $Nil).
Total remuneration of $988,000 was paid by the Company to close family members of the Board of Directors for individuals that
were either employed or engaged as consultants by the Company in the year ended 1 August 2025 (2024: $702,000).
Key management compensation was as follows:
Short term employee benefits
Share Scheme Benefit
2025
2024
$000
$000
3
,77
9
74
3,864
43
The Company operates a long-term incentive scheme and previously operated a legacy employee share scheme for certain senior
executives as outlined in Note 5.2.
27
--
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
7.5 Financial risk management
Fair value estimation
Fair value estimates are classified in a hierarchy based on the inputs to valuation techniques used to measure fair value.
The different levels have been defined as follows:
Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 ).
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (Level 2).
Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
The Group's policy is to recognise transfers into and out of fair value hierarchy levels as of the date of the event or change in
circumstances that caused the transfer.
The Group has financial instruments that are classified as Level 2 within the fair value hierarchy. The fair value of financial
instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using
valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely
as little as possible on entity specific estimates. If all material inputs required to fair value an instrument are observable, the
instrument is included within Level 2. Under Level 2 the Group holds forward foreign exchange contracts. The fair value of
these forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the
resulting value discounted back to present value. Refer to note 7.5.4.
The Group's land and buildings within property, plant and equipment and investment property are classified as Level 3 in the
fair value hierarchy as one or more of the material inputs into the valuation are not based on observable market data. Refer
to notes 4.2 and 4.3 for more information.
Derivatives
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re
measured to their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is
designated as a hedging instrument, and if so, the nature of the item being hedged. The company designates certain
derivatives as either; (1) hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge);
or (2) hedges of highly probable forecast transactions (cash flow hedges).
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items,
as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also
documents its assessment, both at hedge inception and on an ongoing basis, whether the derivatives that are used in
hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of
hedged items.
Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is
recognised in equity in the cash flow hedge reserve. The gain or loss relating to the ineffective portion is recognised
immediately in the profit or loss in the Consolidated Statement of Comprehensive Income.
Amounts accumulated in equity are recycled in the Consolidated Statement of Comprehensive Income in the periods when
the hedged item will affect profit or loss (for instance when the forecast sale that is hedged takes place). However, when
the forecast transaction that is hedged results in the recognition of a non-financial asset (for example, inventory) or a non
financial liability, the gains and losses previously deferred in equity are transferred from equity and included in the
measurement of the initial cost or carrying amount of the asset or liability.
When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast
transaction is ultimately recognised in the Consolidated Statement of Comprehensive Income. When a forecast transaction
is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the profit
or loss in the Consolidated Statement of Comprehensive Income.
Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of these derivative instruments
are recognised immediately in the profit or loss in the Consolidated Statement of Comprehensive Income.
28
--
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
7 .5.1 Financial risk factors
The Group's activities expose it to various financial risks including, liquidity risk, credit risk, and market risk (including currency
risk and cash flow interest rate risk). The Group's risk management strategy is to minimise adverse effects on the Consolidated
Statement of Comprehensive Income. Derivative financial instruments are used to hedge currency risk.
7.5.2 Liquidity Risk
Liquidity risk is the risk that the Group will be unable to meet its financial obligations as they fall due. The Group's approach to
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under
both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.
The Group manages liquidity risk by maintaining adequate reserves, and by regularly monitoring cash flow.
At balance date, the Group had $58.333 million (2024: $45.915 million) in cash reserves and accordingly, management consider
liquidity risk to be relatively low.
The table below analyses the Group's financial liabilities and gross-settled derivatives into relevant maturity groupings based on
the remaining period from the Consolidated Statement of Financial Position to the contractual maturity date. The cash flow hedge
"outflow" amounts disclosed in the table are the contractual undiscounted cash flows liable for payment by the Group in relation
to all forward foreign exchange contracts in place at balance date. The cash flow hedge "inflow" amounts represent the
corresponding inflow of foreign currency back to the Group as a result of the gross settlement on those contracts, converted using
the spot rate at balance date. The carrying value shown is the net amount of derivative financial liabilities and assets as shown in
the Consolidated Statement of Financial Position. Trade payables are shown at carrying value in the table. No discounting has
been applied as the impact of discounting is not material.
As at 1 August 2025
Trade and other payables
Forward foreign exchange contracts
Cash flow hedges:
- outflow
- inflow
- Net
/>6 at 1 August 2024
Trade and other payables
Forward foreign exchange contracts
Cash flow hedges:
-
outflow
-inflow
- Net
29
Less than 3
months
$000's
29,789
29,789
(34,983)
35,198
215
Less than 3
months
$000's
25,228
25,228
(24,318)
25,038
720
3-12
months
$000's
(49,675)
50,162
487
3-12
months
$000's
(40,613)
41,176
563
Total
$000's
29,789
29,789
(84,658)
85,360
702
Total
$000's
25,228
25,228
(64,931)
66,214
1,283
Carrying
value
$000's
29,789
29,789
(84,658)
85,081
423
Carrying
value
$000's
25,228
25,228
(64,931)
66,246
1,315
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
7.5.3 Credit Risk
Credit risk is the risk of the failure of a debtor or counterparty to honour its contractual obligations resulting in financial loss to the
Group. The Group incurs credit risk from trade receivables and transactions with financial institutions. The Group places its cash,
short-term investments, and derivative financial instruments with high credit quality financial institutions. Retail sales are
predominantly settled in cash or by using major credit cards. 0.1 % (2024: 0.0%) of sales give rise to trade receivables. This
maximum exposure to credit risk is the carrying amount of trade receivables.
Concentration of credit risk with respect to debtors is limited due to the large number of customers included in the Group's customer
base.
The Group does not require collateral or other security to support financial instruments with credit risk.
7 .5.4 Market Risk
Foreign exchange risk
The Group is exposed to foreign exchange risk arising from currency exposure predominantly with the US dollar with the purchase
of inventory from overseas suppliers.
The Board has established a Treasury Risk Policy to manage the foreign exchange risk. The policy is reviewed on a regular basis,
and management report monthly to the Board to confirm policy is adhered to. All committed foreign currency requirements are fully
hedged, and approximately 50% (2024: 50%) of anticipated foreign currency requirements are hedged on a rolling twelve month
basis.
The Group uses forward exchange contracts with major retail banks only to hedge its foreign exchange risk arising from future
purchases.
Forward exchange contracts -cash flow hedges
These contracts are used for hedging committed or highly probable forecast purchases of inventory. The contracts are timed to
mature during the month the inventory is shipped and the liability settled. The cash flows are expected to occur at various dates
within one year from balance date.
When forward exchange contracts have been designated and tested as an effective hedge the portion of the gain or loss on the
hedging instrument that is determined to be an effective hedge is recognised directly in equity. These gains or losses will be released
in the profit or loss in the Consolidated Statement of Comprehensive Income at various dates over the following year as the hedged
risk crystallises.
At balance date the Group had entered into forward exchange contracts to sell the equivalent of NZ$84.658 million (2024:
NZ$64.931 million), primarily in US and AU Dollars. At balance date these contracts are represented by net assets of $0.423 million
(2024: assets of $1.315 million). When foreign exchange contracts are not designated and tested as an effective hedge, the gain
or loss on the foreign exchange contract is recognised in the profit or loss in the Consolidated Statement of Comprehensive Income.
At balance date there are no such contracts in place (2024: Nil).
Interest rate risk
The Group has no interest bearing liabilities. Exposure to interest rate risk arises only from the impact on income from operating
cash flows as a result of interest bearing assets, such as cash deposits.
30
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
Sensitivity analysis
Based on historical movements and volatilities and management's knowledge and experience, management believes that the
following movements are 'reasonably possible' over a 12 month period:
•
Proportional foreign exchange movement of-10% (depreciation of NZD) and +10% (appreciation of NZD) against
the USO, from the year end rate of $0.5881 (2024: $0.5949).
•
Proportional foreign exchange movement of -10% (depreciation of NZD) and +10% (appreciation of NZD) against
the AUD, from the year end rate of $0.9139 (2024: $0.9151).
•
A parallel shift of +2% / -2% in the market interest rates from the year end deposit rate of 3.0% (2024: 5.5%) .
If these movements were to occur, the post-tax impact on profit or loss and equity for each category of financial investment:
As at 1 August 2025
Carrying
Interest rate
Foreign exchange rate
amount
-2%+2%
-10% +10%
Profit
Equity
Profit
Equity
Profit
Equity
Profit
Equity
$000's $000's $000's $000's $000's $000's $000's $000's $000's
RNANCIAL ASSETS
Loans and receivables
Cash and cash equivalents
58,333
(1,167) (1,167) 1,167 1,167
3,473
3,473
(2,841) (2,841)
/>.ccounts receivable
366
/>.dvances to Employees
732
Derivatives used for Hedging
Derivatives designated as cash flow hedges (forward foreign exchange
contracts)
423
6,829
-
(5,587)
RNANCIAL LIABILITTES
Liabilities at amortised cost
Trade and other payables
29,789
-
(1,997)
(1,997)
1,634 1,634
TOTAL INCREASE/DECREASE
(1,167) (1,167)
1,167 1,167
1,476
8,305
(1,207)
(6,794)
As at 1 August 2024
Carrying
Interest rate Foreign exchange rate
amount
-2% +2% -10% +10%
Profit Equity
Profit
Equity Profit Equity Profit Equity
$000's $000's $000's $000's $000's $000's $000's $000's $000's
RNANCIAL ASSETS
Loans and receivables
Cash and cash equivalents
45,915
(918) (918)
918 918 2,365 2,365
(1,935)
(1,935)
/>.ccounts receivable
407
/>.dvances to Employees
847
Derivatives used for Hedging
Derivatives designated as cash flow hedges (forward foreign exchange
contracts)
1,315
5,297
(4,334)
RNANCIAL LIABILITIES
Liabilities at amortised cost
Trade and other payables 25,228
(1,541) (1,541)
1,261 1,261
TOTAL INCREASE/DECREASE
(918) (918)
918 918 824 6,121
(674)
(5,008)
31
pwc
HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 AUGUST 2025
7 .5.5 Capital risk management
The Group's objectives when managing capital are to maximise the value of shareholder equity and ensure that the Group continues
to safeguard its ability to continue as a going concern. Group capital consists of share capital, reserves and retained earnings. In
order to meet these objectives, the Group may adjust the amount of dividend payment made to shareholders. The Group has no
specific banking or other arrangements which require that the Group maintain specific equity levels.
7.6 Events subsequent to balance date
Subsequent to year end, the Board has resolved to pay a final dividend of 30.5 cents per share (partially imputed at 56.5%)
(2024: 26.5 cents partially imputed 75.6%). The dividend will be paid on 12
th
December 2025 to all shareholders on the
Company's register as at 5:00pm, 5
th
December 2025.
7.7 Standards, amendments and interpretations to existing standards
Certain new accounting standards, amendments to accounting standards and interpretations have been published that are
mandatory for the 1 August 2025 reporting period have been adopted by the Group and have no material impact. There were
also certain new accounting standards, amendments to accounting standards and interpretations that have been published
which are not mandatory for the 1 August 2025 reporting period and have not been early adopted by the Group. These
standards, amendments or interpretations are yet to be assessed for the disclosure impacts for the future reporting periods.
32
pwc
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, www.pwc.co.nz
Independent auditor’s report
To the shareholders of Hallenstein Glasson Holdings Limited
Our opinion
In our opinion, the accompanying consolidated financial statements (the financial statements) of
Hallenstein Glasson Holdings Limited (the Company), including its subsidiaries (the Group), present
fairly, in all material respects, the financial position of the Group as at 1 August 2025, its financial
performance, and its cash flows for the year then ended in accordance with New Zealand Equivalents
to International Financial Reporting Standards (NZ IFRS) and International Financial Reporting
Standards Accounting Standards (IFRS Accounting Standards).
What we have audited
The Group's financial statements comprise:
•the consolidated statement of financial position as at 1 August 2025;
•the consolidated statement of comprehensive income for the year then ended;
•the consolidated statement of changes in equity for the year then ended;
•the consolidated statement of cash flows for the year then ended; and
•the notes to the consolidated financial statements, comprising material accounting policy
information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the financial statements section of our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence
Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards
Board and the International Code of Ethics for Professional Accountants (including International
Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA
Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Certain partners and employees of our firm may deal with the Group on normal terms within the
ordinary course of trading activities of the business. Other than our capacity as auditor, we have no
other relationship with, or interests in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current year. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
PwC
Description of the key audit matter How our audit addressed the key audit matter
Inventory valuation
As at 1 August 2025, the Group held
$31.3 million of finished goods, net of
inventory adjustments of $0.2 million.
Given the size of the inventory balance,
and the estimates and judgements
described below, the valuation of
inventory required significant audit
attention and is a key audit matter.
As disclosed in note 3.2, inventories are
held at the lower of cost and net realisable
value. At year end, the valuation of
inventory is reviewed by management and
its cost is reduced where inventory is
forecasted to be sold below cost.
The inventory adjustment is determined
based on various factors including
historical data, inventory ageing, current
trends and specific product information
from buyers. Determining the appropriate
level of provisioning involves judgement
and the application of assumptions
including management's estimation of
future selling prices.
Our audit procedures included:
•testing, on a sample basis, the accuracy of
inventory costing to supporting documentation and
calculations;
•considering the level of aged inventory, inventory
turnover levels and enquiries with management;
•performing analytical procedures on balances
supporting inventory provisions to assess their
reasonableness and that the provision amounts
were within expectations;
•considering the results of our testing and in
conjunction with management enquiries
determined whether any specific write downs were
required; and
•reviewing the appropriateness of disclosures in the
financial statements.
Our audit approach
Overview
Overall group materiality: $2.9 million, which represents approximately
5% of Group profit before tax.
We chose Group profit before tax as the benchmark because, in our
view, it is the benchmark against which the performance of the Group is
most commonly measured by users, and is a generally accepted
benchmark.
Our Group audit scoping focussed on those components that are
financially significant to the Group. Specified audit and/or analytical
procedures were performed over certain residual components.
As reported above, we have one key audit matter, being inventory
valuation.
PwC
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements. In particular, we considered where management made
subjective judgements; for example, in respect of significant accounting estimates that involved
making assumptions and considering future events that are inherently uncertain. As in all of our audits,
we also addressed the risk of management override of internal controls, including among other
matters, consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the financial statements as a whole as set out above. These,
together with qualitative considerations, helped us to determine the scope of our audit, the nature,
timing and extent of our audit procedures, and to evaluate the effect of misstatements, both
individually and in the aggregate, on the financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the financial statements as a whole, taking into account the structure of the Group, the
accounting processes and controls, and the industry in which the Group operates.
Other information
The Directors are responsible for the other information. The other information comprises the
information included in the Annual Report and the Climate-Related Disclosures, but does not include
the financial statements and our auditor’s report thereon. The Annual Report and the Climate-Related
Disclosures are expected to be made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information and we will not express
any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the Directors and use our
professional judgement to determine the appropriate action to take.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the financial statements in accordance with NZ IFRS and IFRS Accounting Standards, and for such
internal control as the Directors determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern, and using the
going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
PwC
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a
whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the
External Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report, or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Indumin
Senaratne (Indy Sena).
For and on behalf of
PricewaterhouseCoopers Auckland
26 September 2025
---
26 September 2025
HALLENSTEIN GLASSON HOLDINGS LIMITED
RESULTS FOR FULL YEAR ENDED 1 AUGUST 2025
The Company advises that Group sales for the 12 months to 1 August 2025 were $470.7 million,
an
increase of 8.1% on the prior year ($435.6 million).
Gross margin at 59.3% was consistent with the
59.4% realised in the prior year despite a continued challenging foreign exchange rate for inventory
purchases, which was lower than the prior corresponding period.
The audited net profit before tax for the 12 months was $58.4 million, an increase of +12.1% on the prior
corresponding period ($52.1 million).
Group audited net profit after tax was $39.5 million, an increase of +14.4% on the prior corresponding
period ($34.5 million).
The Group maintains a strong balance sheet and working capital position.
Glassons
Australia
Sales in Australia were $251.5 million which was an increase of +15.3% on the prior corresponding period
inclusive of sales from new and refurbished stores. Net profit before tax was $34.2 million, an increase of
+16.1% on the prior year ($29.5million).
Two new stores were opened during the year. A store in Sunshine Coast, Queensland, and Harbour Town
Adelaide opened in March 2025. Throughout the year, the Werribee store in Victoria was relocated and
expanded, and the Northland store in Victoria was refurbished. In total we now have 40 stores in
Australia, and we continue to explore new store opportunities in the Australian market when the right
opportunities arise. Glassons Australia is currently working with its landlord on a new purpose-built
larger warehouse with improved automation which will ensure the business is prepared for future
growth. The warehouse is expected to be ready in the second half of the 2026 financial year.
New Zealand
Sales in New Zealand for the year were $111.9 million, an increase of +1.7% on the prior corresponding
period. Net profit before tax was $19.2 million, an increase of +27.4% on the prior corresponding period
($15.0 million), continuing on from the foundations set in the first half.
Over the year, the Lynn Mall, Shirley and Queen Street stores were refurbished to ensure the look of the
stores represented the brand through consistency with the rest of the store network. A new store was
opened at the Manawa Bay Outlet Centre near Auckland Airport in September, and a new store was
opened in Frankton, Queenstown in July 2025. The Timaru store was closed at the end of August 2024.
Post year end, the Hamilton central store has been refurbished and has reopened in late August.
Hallensteins
Sales for the 12-month period of $107.3 million (including Australia), were flat on the prior corresponding
period. Net profit before tax was $4.8 million, a decrease of -36.4% on the prior corresponding period
($7.5 million). While a challenging year for the brand, the second half saw encouraging improvements on
the prior corresponding period.
During the year, a new store concept design was rolled out in the new Silverdale store in Auckland in
November, and a new store was also opened in Manawa Bay Outlet Centre in September. Our Queen
Street store has moved to an improved location and reopened in October. At the end of July 2025, the
Upper Hutt store in Wellington was closed. Post year end, our Hamilton central store was refurbished
and reopened in September, and our Lynn Mall store will be refurbished prior to Christmas to ensure
they maintain brand standards. In Australia, the Robina pop-up store has closed post end of year but will
be replaced by a larger permanent site in November 2025. We continue to look for further opportunities
as they arise in Australia.
E-Commerce and Digital
Digital sales represented 18.0% of Group revenue for the year, broadly in line with the prior period, with
overall online sales growing +6.7% year-on-year. Customers continue to embrace a true omni-channel
approach — browsing, buying, and engaging seamlessly across both physical stores and digital platforms.
The Group remains focused on delivering a connected, frictionless experience across all channels.
Looking ahead, we remain committed to adopting new technology and optimising our digital platforms to
ensure an industry-leading experience across desktop, mobile, and in-store touchpoints.
Dividend
The Directors have declared a final dividend of 30.5 cents per share (partially imputed at 56.5%) (26.5
cents per share partially imputed at 75.6% last year) to be paid on 12th December 2025. Together with
the interim dividend of 24.5 cents per share that was paid on 17th April 2025, the full year dividend is
55.0 cents per share. The dividend payment has grown as the Company’s balance sheet continues to
remain strong, and inventory levels are well controlled.
Future Outlook
The first seven weeks of the new financial year have delivered a solid start, with Group sales up +12.9%
on the prior corresponding period, driven primarily by the Australian market and the ongoing
contribution from stores opened or refurbished in FY2025. Current trading performance should not be
seen as indicative of results through the key trading months in the lead up to Christmas.
In New Zealand, trading conditions remain mixed, with cost-of-living pressures continuing to impact
discretionary spend across both brands despite some moderate signs of improvement.
A further update will be provided at the Annual Meeting of Shareholders in December 2025.
Warren Bell
Chairman
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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