New stores and products have boosted vacuum cleaner retailer Godfreys' profit and it expects further growth as it invests in air purification and cordless technology.
The company added 14 stores in the year to June, helping to deliver a five per cent rise in sales, as comparable store sales were flat.
Godfreys made an underlying net profit, which excludes the cost of its share market listing in November 2014, of $11.5 million, up more than a third on the prior year.
It plans to open around 10 new stores per year and is doubling its product pipeline to underpin future growth, investing heavily in innovation such as air purification and cordless cleaners.
"Last year we launched 37 new products ... we will be bringing out that many products within the first six months of this financial year," chief executive Tom Krulis said.
Godfreys has also beefed up resourcing and product selection in China to combat the higher costs resulting from a sliding Australian dollar.
"Being able to find quality products at a lower US dollar cost is one of the secrets to us being able to hold our margin - that'll hold us in good stead," Mr Krulis said.
Comparative store sales have improved in July and August, despite a challenging retail market and soft consumer confidence, he added.
However the company is fortunate to be in a reasonably non-discretionary category, helping it avoid some of the challenges faced by other retailers, Mr Krulis said.
"Things are pretty choppy out there and I think consumers are reticent to spend readily," he said.
"If you have a cleaning appliance and it breaks down you'll go and buy a new one no matter what the conditions are ... we probably do a bit better when things tighten up a bit."
Godfreys finished four cents lower at $3.00.
STORE GROWTH DELIVERS FOR GODFREYS
* Underling net profit up 34pct to $11.5m
* Revenue up 5pct to $182.6m
* Final dividend and special dividend totalling 15.4 cents
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