• Underlying profit of $62.0m for FY25
• Solid results across ANZ, UK strategy progressing
• 5 new stores to open in ANZ in FY26, UK losses trending down

Nick Scali Limited reported a strong performance for FY25, with the business delivering an underlying profit of $62.0m. The company made solid progress in advancing the strategy in the UK, and delivered solid results across Australia and New Zealand (ANZ). The equity raise commenced in FY24 to fund the UK acquisition was completed in FY25, with final net proceeds of $58.6m. A fully franked final dividend of 33 cents per share was paid in October, bringing the total dividends for FY25 to 63 cents per share. In the ANZ region, total written sales orders for the year were $460m, an increase of almost 3%, with particularly strong growth in the second half of 7.3%. Revenue for FY25 in ANZ was $453.5m, down 1.4% vs FY24. The UK operation reported revenue of $41.8m in FY25, with the performance impacted by clearance of the legacy Fabb product range and an extensive program of refurbishments and rebranding. The company generated cash of $54.7m from operating activities in FY25, with total borrowings at $71.7m remaining unchanged during the year. During FY25, two new showrooms were added to the ANZ network, and 11 stores were converted to the Nick Scali store design, branding and product range in the UK. For the first quarter of FY26, total written sales orders in ANZ are up 11.6%, and sales revenue is expected to increase 7-9% in the first half. In the UK, written sales orders have begun to improve, and the gross margin has increased to 58.3% in the first quarter. The Board and management team expressed gratitude for the dedication of employees, customers, suppliers, and shareholders.

For the first half of FY26, the ANZ statutory net profit after tax is expected to be in the range of $39-40m, compared to $34m in the prior corresponding period. The statutory net profit after tax for the group in the first half FY26 is expected to be in the range of $33-35m, compared to $30m in the first half FY25.

In Australia and New Zealand, the company is committed to opening 5 new stores (3 x Nick Scali and 2 x Plush) during FY26. In the UK, as more store refurbishments are completed, written sales orders have begun to improve, and the gross margin has increased significantly. The UK statutory losses are expected to trend downwards in the second quarter compared to the first quarter.