Living & Giving

Retailer Briscoe Group has warned its annual tax paid profit could be 15 per cent below last year's $26 million.  The result would depend particularly on the buoyancy or otherwise of the retail market during the Christmas period, group managing director Rod Duke said today.

"The competitive trading conditions experienced throughout the first half of this year have continued into this third quarter.  "Although total sales and margin were higher than for the same period last year, the group did not generate the improvement we were anticipating, with the negative same store sales performance offsetting the positive impact of our new stores," Mr Duke said.  "If the recent trading performance continues for the remainder of the year, our full year tax paid profit could be as much as 15 per cent below the $26 million achieved for last year."

Releasing its third quarter figures, for the 13-week period to October 28, Briscoe said sales were $87.6 million, 8.1 per cent higher than the corresponding period a year ago.  On a same store basis, the group's sales for the period were 0.6 per cent below those for the third quarter of last year.  Homeware sales increased 7.7 per cent to $59.2m while sporting goods sales increased by 8.9 per cent to $28.4m. On a same store basis, homeware sales increased by 1.2 per cent for the quarter, while sporting goods sales decreased by 5.5 per cent.

The October quarter sales figure took unaudited group sales for the year-to-date, starting January 29, to $277.9m, an increase of 11.9 per cent above the first nine months of last year.  Homeware sales increased 11.4 per cent during the period, while sporting goods sales increased 12.8 per cent.

Two new Briscoes Homeware stores in Pukekohe and Upper Hutt and the opening of Living & Giving at Albany, on Auckland's North Shore increased homeware store numbers to 52.  Sporting goods store numbers increased to 32 during the quarter with the opening of new Rebel Sport stores in Wairau Park, Pukekohe and Timaru.

A further two stores were due to be added before the end of the year with the opening of Living & Giving stores in Manukau and Nelson.  Briscoe shares were down 1c in mid-morning trade to $1.50, having ranged between $1.45 and $1.80 in the past year

INVESTMENT

Worth: $350 million

ERIC WATSON continues to be well known as socialite Nicky Watson's ex-husband - his name hasn't appeared too often on business pages over the past year. His Pacific Retail Group has struggled with UK electrical goods retailer PowerHouse, which was taken to court this year for rent avoidance after closing more stores. PRG's local investments include Bendon and Living and Giving. Watson's wealth has been downgraded from last year because of the poor performance of Pacific Retail.

At press time PRG share trading had been suspended while the NZX awaits the company's annual report, held up while an audit of the $145 million sale of Pacific Retail Finance to GE Finance earlier this year proceeded.

The Warriors league team, which Watson has shares in through his company Cullen Sports, was docked competition points and faced financial losses this year when salary cap breaches were discovered. But Watson said he remained committed to the club.

On a more positive note, Hanover Finance, which Watson invests in alongside fellow Rich Lister Mark Hotchin, remains a very profitable business. Its 2005 profit was up 50% from the previous year at $17.4 million.

Watson now lives in London and is renting out his south Auckland homestead, Westbury Estate, for $6000 a night. The property includes a nine-hole golf course, a tennis court, helicopter pad, 15m heated pool and sauna among its many facilities.

2005: $400 million