Smiths City Group has reported an increase in its half year profit after tax, recognising a $2.9 million insurance payout for the earthquake damaged Colombo St store.

In the six months to October 31, 2014, the company had an operating surplus of $4.3 million, an increase of 124.1 per cent from $1.9 million in 2013.

Operating revenues were $109.5 million, an increase of 0.9 per cent from $108.5 million in 2013.

Trading profit was $2.4 million, a decrease of 7.9 per cent from $2.7 million in 2013.

“Trading conditions through the second quarter and into November were very competitive, however the run-up towards Christmas has been stronger with the traditional spending pattern emerging,” the company said.

“Whilst Canterbury continues to show some growth, the fall in the Fonterra pay-out may have some impact on demand in the rural sector, although we have not seen that yet and our feeling is that large parts of the rural sector are better placed to handle these conditions than may have been the case in the past.”

Final repairs to the earthquake damaged Colombo St store were completed in October, with the cost of the repairs added to the valuation and increased the book value to $16.6 million as at October 31, 2014.

Repairs were covered by a $2.9 million insurance payout.

An independent valuation of the property was $17.8 million.

“The board was particularly pleased to complete the rebuild and successful  opening of our flagship Colombo Street store in October. This store is now the largest furniture, bedding and appliance store in Christchurch and brings our business there up to full strength,” Craig Boyd, Smiths City Group chairman, said.

Rotorua and Palmerston North stores were relocated to more prominent locations within their respective cities.

A new CEO is currently being sought following the announcement that Rick Hellings would stand down from his position in 2015.

In November the board appointed Sheena Henderson as a replacement for Sarah Ottrey.