On Monday Smiths City Group’s annual results revealed that its trading profits have reduced by half to $2.6 million from $5.6 million.

This national retail chain, with its headquarters in Christchurch, has reported a profit after tax of $8 million for the financial year to April 30, up from $4.1 million in 2014, which came from an $8.5 million insurance payout for the company’s Colombo Street headquarters, which were damaged in the Canterbury earthquakes.

The furniture, electronics, whiteware company and sports equipment chain reported a trading profit before tax of $2.6 million, down from $5.6 million in the 2014 financial year.

Revenue for the company rose slightly to $221.4 million up from $220 million the previous year.

Shareholders will receive a dividend of 3.5 cents for the full year, the same as in 2014.

Smiths City share price was 53 cents on Monday, recording a  4.9 per cent increase over the last year.

Smiths City Group chairman, Craig Boyce, said the results came in the midst of a challenging retail environment.

“Sales and margin pressure continued, and there was particularly fierce competition in computer and consumer electronics prices,” he said.

“Post-Christmas sales in Christchurch have been weaker than last year due to lower confidence in rural areas following the East Coast drought and lower milk prices for farmers.”

He added that Smiths City is pleased that the group has broadly held revenues when compared to last year.

“Sales on a same-store basis have risen 2.5 per cent,” Boyce pointed out.

“The chain is looking to expand its North Island presence in the year ahead, and wants to broaden its offering through the North Island to rebalance our revenues across New Zealand.”

Smiths City is opening a new store in Taupo in October.