Michael Hill's profit shines

Results for Michael Hill International(MHI) were expected by the market as they were telegraphed a few weeks back but it is pleasing to see the breakdown.



Under Michael Hills careful
management his company looks
set for a good long term future.


I have been a long term follower of this company and have only admired it from a distance, having bought a very small holding late last year I am very pleased that I did.

Key figures:

* Operating revenue of $209.191m up 4.8%
* EBIT of $30.799m up 27.8%
* Net profit after tax of $19.480m up 27.1%
* 19 new stores opened during the six months
* Total of 210 stores open at 31 December 2007

Full profit rundown from NZX


Australia and Canada performed well over the last 6 months but New Zealand stores were flat, reflecting the poor economic conditions that we are currently facing. Business is likely to be tough in New Zealand for the lead up to the General Election at the end of the year and tax cuts offered by National are likely to stimulate the retail sector at the start of 2009.

Australia clearly has much more store growth to come, their current 136 stores vs the New Zealand store count of 52 would equate to roughly 250 stores when you figure OZ has five times the population that NZ has. Even store growth in Auckland is likely to be added to as its citizens need approx 30,000 ft of new retail space very year just to accommodate population growth.

Canada has the most fascination with me though. It has grown stongly in revenue over the last 6 months and doubled their operating profit on a base of 22 stores.

Their apparent success here, after just a few years, makes this market one to watch closely for the future direction of the company as a whole. Not just for profits that should come from the Canadians though.

I'm highly interested in their eventual push further south, into the clutches of the US consumer.

This market will be MHI's toughest one yet and if successful will clearly make the company a true global player, something the man, Michael Hill, has had designs on for many years.

The route the company is taking into the USA differs from that of another prospective Kiwi global player, Pumpkin Patch Ltd(PPL), Pumpkin opened in the US first, while MHI's strategy of entering a smaller, similar market seems to be a wiser move in my mind, less short term risk but a bigger long-term payoff.

It will be interesting to see where Michael Hill International will be in 10 years, last weeks profit announcement and associated figures make the possibility of global success in the long term an attainable goal.


Disclosure: I own MHI shares

Essential Links:

Investor Information

Related articles from Share Investor

MHI has defined growth strategy
MHI profit sparkles
Pumpkin's expansion comes at a cost


c Share Investor 2008

Clarks rudeness to donor Owen Glenn plumbs new depths

Friday, February 22, 2008 By Rod Emmerson

"Helen's idea of Fidelity"


Ignoring the biggest donor to your 2005 election bid, Owen Glenn, at a function that you are supposed to be the figurehead of, at a school of business that bears the name of that donor and using the Maori race card excuse not to rub noses with him is pushing the envelope even for this sheila.

It is rude and disrespectful and certainly not something a balanced Prime Minister would do.

Its childish stuff and her modus operandi, but something that brain dead Labour party voters seem to ignore year after year when they vote this trollop back in.

The video of the opening of the school is a classic and if body language tells you anything here its that Helen Clark would rather at a National Party Election victory party(OK thats going too far) or perhaps at the main meeting house at Waitangi on a wet day.

• Watch Video: Clark and Glenn at the Business School opening
• Watch Video: Mike Williams - 'I screwed up'

Video from NZ Herald


There is much more dirt to dig up over this scandal and I think I can hear Fran O' Sullivan from the NZ Herald working on her word processor now.

Stay tuned!

c Political Animal 2008

Anti Anti-Smacking Petition slap in the face for out of touch Parliament

The anti, anti-smackers group have succeeded in their quest to get 300,000 kiwis to vote for their petition.

Congrats from Political Animal and congrats to those who cast their vote.

A real smack in the face for Bradford and the lemon suckers from Labour and other supporting players; Greens, Maori Party and the dopey National Party.

If there is a referendum this election, any elected party will be even dopier to ignore it.


c Political Animal 2008

Petition aiming to revoke smacking bill passes 300,000

NZPA | Friday, 22 February 2008

A group aiming to overturn the so-called anti-smacking legislation say they have enough signatures to force a referendum.

One of the organisers, Kiwi Party leader Larry Baldock, told a news conference today the petition had gone past the 300,000 target.

"The actual target to force a referendum is 285,019, which is 10 per cent of the electoral roll, but we aimed at 300,000 to be safe," Mr Baldock said.

"As of today we have 322,252 signatures."

The petition asks: "Should a smack as part of good parental correction be a criminal offence in New Zealand?"

Mr Baldock said nearly as many people had signed a second petition question, "Should the Government give urgent priority to understanding and addressing the wider causes of family breakdown, family violence and child abuse in New Zealand".

The petition follows the passing into law of Sue Bradford's bill last year outlawing the defence of reasonable parental correction in assault cases.

It was passed 113-8 after a last-minute amendment put forward by National stating police did not have to pursue inconsequential smacking.

Mr Baldock said the petition would be handed into Parliament at the end of next week, where parliamentary clerks would check on the number of duplicate signatures.

"We think some it impossible some people won't have signed twice - 12 months is a long time - but we are hoping it will be no more than 10 to 15 per cent."

If the petition reaches the official target Mr Baldock said there was a good chance a referendum would be put to voters on election day.

The referendum would not be binding.

Mr Baldock said politicians should not ignore the referendum if it was passed.

"It's not just about pro-smacking or anti-smacking, it's about our democracy. The most recent poll said 74 per cent of New Zealanders were opposed to the bill," he said.

Co-organiser Christine Rankin said Ms Bradford's bill would do nothing to stop child abuse.

Owen Glenn given the cold shoulder

c Stuff 2008

A picture tells at least a $600,000.00 story.

Billionaire Owen Glenn is protected by bully boy Trevor Mallard from the clutches of her former friend and secret donor to the Labour Party.

Trevor was hear to say from someone just out of frame of this picture-possibly Winston Peters, " Helen my dear, should I do to Glenn what I did to Tau Henare?"

Related Political Animal reading

Snouts in the trough bent out of shape
The Owen Glenn story: Singing the same tune but hitting a bum note
Labour Party Election funding murky at best
Mallards new anti violence advert
Trevor mallard must go

c Political Animal 2008