[ad_1]
Ross Giblin / Stuff
Briscoe Group claimed a Covid-19 wage subsidy of $ 11.5 million, but returned it amid mounting public pressure.
Briscoe Group will pay investors a special dividend of 6 cents a share after it canceled a $ 28 million dividend in March, when there was great uncertainty about the impact of Covid-19.
Board chair Dame Rosanne Meo said the group’s cash position was strong as a result of the cancellation of the dividend in March, but also of the “continued exceptional operations” experienced since New Zealand emerged from the lockdown in May.
That sustained performance meant, in October, that the company, which owns the Briscoes, Rebel Sport and Living & Giving chains, was able to repay a $ 11.5 million wage subsidy it received from the government, he said.
After receiving the wage subsidy, Briscoe Group reported an after-tax profit of $ 28 million for the six months through July 30, a decrease of 1.3 percent from the same period last year.
READ MORE:
* Briscoe Group pays a special dividend of 6 cents per share after repaying a wage subsidy of $ 11.5 million
* Briscoe sales in the third quarter increase 15%; optimistic retailer for Christmas
* Briscoe will return a $ 11.5 million wage subsidy after ‘strong sales’
It also paid an interim dividend of $ 20.3 million, or 9 cents a share, and its wealthy managing director Rod Duke received $ 15.6 million, thanks to his 78% ownership of the company.
The move drew harsh criticism from academics and the public, with a Morrinsville man spray-painting the side of a Briscoe store: “Salary subsidy, no shareholder dividend. Return it”.
Meo said he received a lot of positive feedback from customers and shareholders for repaying the subsidy.
“We are very proud of how we fully supported our employees during this difficult year and there were no layoffs or permanent store closures.”
The special dividend, valued at about $ 13 million, will be paid on January 20.
“We are delighted to be able to deliver this additional return to our shareholders in a year that has seen incredible ups and downs.”
Briscoe shares last traded at $ 4.58, 83 cents more than a year earlier.
SUPPLIED
Briscoe Group CEO Rod Duke owns 78% of the company.
Managing Director Rod Duke said he expected to produce a full-year result in excess of the $ 62.6 million he reported for the year ending January 2020.
Trade has remained strong as it approaches the middle of its “crucial final quarter,” he said.
The Black Friday promotions produced record sales for the group, which was a good sign for trading in the lead up to Christmas and the end of the financial year on January 31, he said.
The group is due to report its fourth-quarter sales on February 9 and its full-year results, including the final dividend announcement, on March 16.
