circumstances now facing the retail sector” as consumers cut their personal debt levels and rein in spending. With this year’s performance and the Top 200 Award under its belt, Kathmandu plans to drive sales growth by rolling out more stores in New Zealand and Australia. It also wants to optimise its existing store footprint. According to Strong it will also introduce new products and develop its online capabilities. “The success of these strategies to date, combined with the delivery of the new Kathmandu brand strategy over the next two years will support the ex-
pansion of both the Kathmandu retail footprint and the range of product that we offer,” he added. The judges this year rated Kathmandu’s performance outstanding on all the criteria they had to consider to find finalists and a winner in this award category. It was, they said, simply an outstanding performance in a very difficult market. “Actually, it was a stellar performance,” said one judge. The company’s focus on selling quality products, its management of cash and borrowings to reduce debt and its generally sound management processes all contributed to the result.
The judges also commented on the company’s positive approach to environmental management and its employment policies. It was, said the judges, a great allround performance that suggests this newly listed company is serious about growth and the future of its product and service offering. Company CEO Peter Halkett told shareholders this year that, while Kathmandu recognises and is cautious about the uncertain economic outlook ahead, “our performance through the past year gives us confidence that our focused growth strategies should continue”. M
MOST IMPROVED PERFORMANCE AWARD JUDGES’ COMMENTS WINNER KATHMANDU
FINALIST BALLANCE AGRI-NUTRIENTS
Retail is tough, but Kathmandu is tougher. In a very flat market on both sides of the Tasman, this retailer of outdoor clothing and accessories dressed for the occasion. It grew total sales by 23.5 percent, same store sales by 16 percent and net profit before extraordinaries by 47 percent. That is a fantastic result in any economic climate. The good news does not stop there. Kathmandu expanded its product range and opened more stores, lifting its portfolio in New Zealand, Australia and the UK to a total of 111. Kathmandu dresses to kill the competition and deserves to win the Marsh Most Improved Performance Award for 2011.
Strong demand for fertiliser by farmers flush with funds from strong commodity prices delivered Ballance into greener pastures and super profits this year. Favourable market conditions drove a 19 percent increase in sales volumes. Management took the best possible advantage of an excellent growth opportunity, expanded its product range, made strategic investments and turned in a robust performance that deserves recognition. Profit after tax increased by 375 percent and the company paid out the largest rebate in its history.
FINALIST HELLABY HOLDINGS After four years of business and balance sheet reconstruction, Hellaby Holdings put its best foot forward this year. The company’s diversified portfolio of New Zealand industrial, distribution and retail businesses turned in a 49 percent better profit, dramatically reduced debt and boosted shareholder returns substantially. A great all-round performance that supports the directors’ claim that the company has a “new sense of purpose” and is working to accomplish its “vision to be a leading Australasian investor”.
DECEMBER 2011
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