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SYDNEY/WELLINGTON, Feb 18 (Reuters) - Automotive parts retailer Repco Ltd posted a 29 percent rise in first-half net profit before significant items on Wednesday, driven by strong sales growth and wider margins.
Repco Chairman Michael Brown said the result was in line with expectations and put Repco, which relisted in Australia and New Zealand in November 2003, on track to meet its prospectus forecast for the 2004 financial year.
"We remain confident the company is on the right path to deliver profitable growth over the medium term," Brown said.
Repco reported net profit before significant items of A$15.1 million ($11.9 million) for the six months to December 31, up from A$11.7 million a year earlier.
Net profit after significant items -- principally related to early redemption of Repco unsecured notes -- was A$12.4 million.
"The benefits from our major initiatives are continuing to flow. Most encouraging are the results from actions taken to grow retail sales," Brown said in a statement. Repco said total sales grew 4.3 percent, reflecting 11.2 percent growth in retail sales and 1.6 percent growth in trade sales, while gross profit margin rose to 42.5 percent from 41.9 a year earlier.
Total store numbers at 31 December 2003 stood at 417, with 190 configured for both trade and retail customers.
Shares in Repco, which listed at a five percent discount to its issue price of A$2.65, last traded down 0.7 percent at NZ$3.07 in New Zealand and closed Tuesday trade in Australia at A$2.75. ($1=A$1.25)