Premier's Just Result

  Solomon Lew's Premier Investments first-half net profit apparently dropped 13.7% and but the company said & #160;it remains & quot;cautiously optimistic & quot; about the performance of Just Group.Net profit for the 27 weeks ended January 30, 2010 was & #36;42.44 million compared to & #36;49.18 million in the previous corresponding period.For the second interim in a row, shareholders will get a special dividend from the company.Total payout is 38c a share (18c interim and 20c special payment). That's one cent a share up from the 2009 interim of 17c a share and 20c.The company said the & #160;lower profit was only apparent and was & #160;due to the change of balance date for Premier to fall into line with that of Just Group which balances at the end of July. & quot;As previously announced, last year Premier moved its year end to 25 July 2009, in line with Just Group's year end, in part to allow for a more meaningful analysis of Just Group's underlying operating result, & quot; Premier said.The company explained that & #160; & quot;in making comparisons, & #160;one should be mindful that:Premier's 1H2010 comprised 27 weeks, with 1H2009 being 29 weeks and 5 daysJust Group's 1H2010 comprised 27 weeks, with 1H2009 being 26 weeks & #160;Premier earned substantial interest in 1H2009 on cash reserves which were ultimately used during 1H2009 for the Just Group acquisition (despite Just Group being consolidated from the start of 1H2009). & quot;This is the main reason that interest income earned by Premier was down & #36;11.0 million on 1H2009. & quot;Comparisons between 1H2010 and 1H2009 are more meaningful at the Just Group level (although the fact that 1H2010 comprises 27 weeks still needs to be considered). & quot;Premier said & #160;Just Group's EBITA was up 7.7% on the previous corresponding period to & #36;60.3 million. & quot;Just Group's pre-tax profits rose to & #36;56.3 million, representing an increase of 12.3% on the previous corresponding period.Just Jeans owns Jay Jays, Dotti, Smiggle and Peter Alexander brands.Premier said that & #160;it recognised the retail environment continued to be challenging for Australian retailers due to the potential for further interest rate rises and & quot;the cycling of the 2009 fiscal stimulus. & quot; & quot;However, Premier is cautiously optimistic in relation to the relative performance of Just Group given its range of brands, their broad demographic coverage, the proven strength of its core and growth brands and a strong focus on retail fundamentals to achieve acceptable margin growth, & quot; the group said in a statement. & quot;Portmans was very disappointing, but Premier remains confident that it can again become a strong contributor to the portfolio and represents significant upside potential. & quot;Excluding Portmans, LFL sales were up 4.7% (including Portmans, LFL sales were up 1.1%). & quot;At the same time as growing sales, Just Group controlled its CODB. Notably, Just Group saw margins holding in spite of strong competition and extensive competitor discounting, & #160;with inventory management a continued focus and stock turnover remaining well ahead of industry averages. & quot;Premier said it had & #160; & #36;325 million in cash reserves and had cut & #160;debt at & #160;Just Group.The shares closed down yesterday. They were sold off in an early negative reaction, hitting a day's low of & #36;8.55 before inching higher in later trading to end at & #36;8.67, down 34c or 3.7%. & #160;  

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