Christchurch-based appliance and furniture retailer, Smith’s City Group, posted an increase in revenue of 17.6 per cent, compared to the prior corresponding period, partly due to the company’s purchase of Furniture City in April 2016.

On a same store basis, sales revenues increased by 7.7 per cent compared to the previous corresponding period. Delivered gross margin has improved by one per cent over last year for the same period.

Roy Campbell, company CEO, also announced the retail division of Smiths City Group, Smiths City Southern, has entered into a lease which will see the opening of the 30th Smiths City store in Hastings, New Zealand.

“When opened in February 2017, this store will be the first of the Group’s new store retail layouts based on the market research conducted in 2016, and is consistent with the Group’s stated desire to expand nationally,” Campbell stated. “The retail layout will be then rolled out throughout the retail presence as per the CEO’s address to shareholders in September 2016.”

Smiths City also stated it will switch lenders and has signed a committed terms sheet with a major trading bank to refinance its existing debts.

According to Smiths City, the term sheet is subject to final legal documentation and customary conditions precedent being satisfied. The group will be required to provide guarantees and security to the bank.

Details of the new lender were not provided but the company stated it believes the new debt facilities will result in material savings in interest costs to the group.