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PAS Group second half to be ‘driven by new acquisitions’

PAS GroupPAS Group expects its second half growth to be driven by its two acquired businesses, after reporting an underlying half year net profit after tax (NPAT) increase of $5 million.

The rise in NPAT represents a 51.5 per cent increase from the previous corresponding period. The clothing retailer and wholesaler reported an earnings before interest, tax, depreciation and amortisation increase of 27.3 per cent to $11 million and a retail sales rise of 13.9 per cent to $79.6 million. Like for like store sales was also up 3.4 per cent.

Company CEO, Eric Morris, said the increase came from their online sales growth, the opening of new stores and the full year impact of the stores they’ve opened during FY2015. During the period, 16 new stores were opened, taking the company’s total number of stores to 282 as of December 31.

Wholesale sales for the half were up 34.5 per cent to $63.8 million, ‘driven by the Designworks sports division and licensed brands.’

Late last year, the group acquired online wedding dress business, White Runway and swimwear brand, JETS swimwear. “Growth in H2 FY2016 will be driven from new stores, online, moderate wholesale growth in Designworks and contribution from the two new businesses,” said Morris.

The company’s board has declared an interim dividend of 2.6 cents per share, fully franked, and payable on April 8.

“The company has delivered a strong first half result including positive retail like for like sales and significant earnings improvement over the prior year. Like for like sales growth for the first eight weeks of the second half has been softer than H1 but continues to be positive,” Morris said.

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