Rebel Sport Limiteds consolidated net profit for the fiscal first half ended December 30, 2006 was A$14.4 million ($10.9 mm), a A$1.5 million ($1.1 mm) or 11.4% increase on the A$12.9 million ($9.7 mm) result achieved for the six months ended 31 December 2005.
This is equivalent to 17.95 cents per share for the six months ended 30 December 2006 (for the six months ended 31 December 2005: 16.66 cents per share). Sales revenue for the six months ended 30 December 2006, when compared to the six months ended 31 December 2005 increased by 14.5% from $183.9 million to $210.5 million. Sales revenue on a same store basis increased by 11.1%.
During the current financial period, Rebel Sport opened two new stores, in Macquarie and Wagga Wagga (NSW), bringing the total number of Rebel Sport stores to 63. There are currently 10 Glue stores. Although we are negotiating on more new sites, there is only one confirmed store opening in the second half of FY2007, at Watergardens Town Centre (VIC).
Subsequent to this half year ended, we have learned that as a result of the proposed demolition of the Mid City Centre in Sydney, our Sydney City store will close in approximately August of this year. It is a major disappointment to lose our flagship and most profitable store. However, we are endeavouring to secure an alternative city site.
Sales for the consolidated group for the seven weeks ended 17 February 2007 have increased by 15.1%. Sales on a like store basis increased by 13.2% for the same period. Sales are being driven by discounting in order to decrease excess levels of clearance inventory on hand. As a result, trading margin has decreased and we expect margin pressure to continue for at least the remainder of the financial year.
During the half year ended 30 December 2006, Rebel Sport received a $4.60 cash offer to acquire all of the shares in the Company from Foghorn Holdings Pty Limited, a
company associated with Archer Capital Pty Limited. The Rebel Sport directors have
unanimously recommended that shareholders accept the offer in the absence of a superior
proposal. Due to the offer, the directors are unable to declare a dividend at this point in time.