Auto, sports and leisure retailer the Super Retail Group expects modest growth in the first half as it recovers from weaker than expected sales linked to the Federal Budget.

The owner of Supercheap Auto and Rebel sports chain has posted a 5.6 per cent rise in net profit to $108.4 million for the 12 months to June 28.

This is in line with the group’s profit forecast of between $107 million and $109 million, which was trimmed in June after the company suffered weaker than expected sales due to widespread belt tightening linked to the May federal budget.

MD Peter Birtles, says the group expects sales growth to gradually recover.

“We expect like for like growth in the first half of the year to be modest given the strong growth in the first half of the prior year and the softness in consumer confidence,” he said.

“But we expect higher second half growth as benefits from operating improvements are delivered and as we cycle less demanding comparatives.”

He said earnings margins were expected to grow across the group through a combination of sourcing, ranging, promotions and cost management initiatives.

In the first six weeks, the company’s like for like sales are just ahead of the prior year.

Birtles said this was a strong improvement on the trend experienced over the last eight weeks of the prior year.

It has declared a fully franked dividend of 40 cents per share for the full year, an increase of two cents per share, or 5.3 per cent, over the prior year.

The group owns brands such as Ray’s Outdoors, BCF, Supercheap Auto and sports retailer Rebel.

AAP