Super Retail Group reports 5.6% jump in profits; Tatts deals shareholders a bad hand with profit slump: Midday Roundup

Super Retail Group, owner of brands including Rebel Sport and Supercheap Auto, has reported a 5.6% jump in profits for 2014.

The retail group’s net profit after tax rose to $108.4 million, while revenue lifted by 4.6% to $2.11 billion.

Super Retail Group managing director and chief executive Peter Birtles said in a statement the result, while in-line with forecasts, reflected mixed performance across the group.

Birtles said the auto retailing division was an outstanding performer with around 10% growth, but the company’s leisure and sports retailing arms had lagged.

“In the leisure retailing division, the BCF business was impacted by a slowdown in sales in stores that had previously benefited from investment in the mining industry,” said Birtles.

“The sports retailing division had a solid start to the year but performance was impacted by inventory supply challenges resulting from the implementation of new merchandise and supply management systems in October and from a slowdown in customer demand following the federal budget and a warmer start to winter.”

Tatts deals shareholders a bad hand with profit slump

Gambling group Tatts has posted its financials for 2014, disappointing shareholders with a decline in profits.

The company reported a 19% decline in its full-year net profit, falling from $247.3 million in 2013 to $200.4 million this year.

Revenue sank 7.9% to $2.868 billion for the year, compared with $3.116 billion in 2013.

In a statement, Tatts blamed the introduction of the Victorian government’s health benefit levy, which saw it pay an “illogical” $42.6 million poker machine levy on its “discontinued pokies business for the final 46 days that business operated.”

Shareholders have reacted to the news, pushing shares down to $3.42.

Shares up on open

Aussie shares have opened higher this morning, after closing on a new post-GFC high last night.

CMC sales trader Niall King said he expects local shares to continue to surge through today’s trade.

“With a decent lead from our US counterparts to lean on and a plethora of generally positive corporate earnings to digest, local participants have maintained their recent bullish bias,” said King.

The S&P/ASX200 benchmark was up 23.5 points to 5658.1 points at 11.56am AEST. On Wednesday, the Dow Jones closed 59.54 points higher, up 0.35% to 16979.1 points.