The founder of the Michael Hill International jewellery business, Sir Michael Hill, is stepping down to make way for his daughter to succeed him as chair.
Emma Hill will step up from her deputy chair position when her father retires following its annual meeting in November, the Brisbane-based company said.
Ms Hill, who first started working for the company on the shop floor 30 years ago at age 13, established the company’s Canadian business in 2002 and was appointed to the board in 2007.
“Emma has learnt jewellery retailing from the ground up, has worked across the breadth of the business, and across our international marketplace,” Hill said.
Hill family associates control some 53 per cent of the company.
The retailer, which has expanded from a single store in Whangarei in 1979 to 296 stores across New Zealand, Australia, Canada and the US, increased annual profit 11 per cent to NZ$31.03 million.
However, it is cutting its annual dividend for the first time in six years to five cents per share, from 6.5 cents in 2014, the first decline since 2009.
“The reduction in the full-year dividend is a reflection of the flat earnings growth for the year together with the group’s ongoing growth ambitions,” it said.
MHI intends to boost its store numbers in Australia to 175 by the 2018 financial year, from 167 at present and expects to add an extra store to its 52 in NZ in the 2017 financial year.
In Canada, the company opened seven new stores, taking the total to 60 and it expects to open eight stores this year, and six in each of the following two years, taking the total to 80 stores by the 2018 financial year.
It said its Canadian unit had now reached a critical mass, allowing increased spending on marketing and brand awareness.
Meanwhile, in its fledgling US operation, the company’s loss widened to US$1.9 million from US$1.7 million the year earlier, which it said was in line with expectations.
It expects to increase US stores to 19 by the 2018 financial year from nine currently.
The retailer said its Emma & Roe brand is still being tested, with one store in NZ and seven in Australia. No financial details were given for the chain.
Commenting on her appointment as chair, Ms Hill said she was pleased and excited to accept the role. “MHI has a bright future. The last 30 years have been a great journey of learning, perseverance and growth. Our rich heritage married with our high quality people positions us well to move forward and achieve our ambitions. I have always admired my father and what he has created and feel privileged to be succeeding him as chair.”
BusinessDesk
