• Underlying profit after tax of $33.2m, excluding $1.3m in UK restructuring and $2.8m in ANZ costs
• ANZ Group revenue of $222.5m and gross profit margin of 64.4%
• UK revenue of $28.6m and gross profit margin of 45.1%

Nick Scali Ltd reported its 1H FY25 results, with the ANZ Group delivering underlying profit after tax of $36.0m, and the UK business reporting an underlying loss of $2.8m. The ANZ Group revenue was $222.5m, with a gross profit margin of 64.4%, while the UK revenue was $28.6m with a gross profit margin of 45.1%. The company incurred $1.3m in restructuring and integration costs for the UK, and $2.8m ($1.9m post-tax) in costs in ANZ resulting from the business failure of a freight forwarder. The company's balance sheet remained strong, with cash and bank deposits of $87.6m at 31 December 2024. The company also provided an update on the integration of its UK acquisition, including the alignment of business processes, implementation of the group ERP, and the transition to the Nick Scali product range. The company plans to refurbish and re-brand 8 more UK stores in 2H FY25, which is expected to cause further disruption and increase short-term losses. The company's store network expansion plans include 73 opportunities for Nick Scali in Australia and New Zealand, and an undetermined number of opportunities in the UK.

The company provided the following forward-looking financial guidance: ANZ Group underlying profit before tax for 1H FY25 of $51.2m, and UK underlying loss before tax of $2.8m. The company also expects further cost savings from the UK acquisition, with a realised run rate of circa $2m per annum partially reflected in the 1H FY25 results.

The company's outlook indicates continued volatility in trading, with written sales orders down 8.5% in January 2025, although the last week of the January Sale in February was positive 5%. The company expects further disruption and increased short-term losses in the UK during 2H FY25 as it refurbishes and re-brands 8 more stores. The company is also reviewing a number of potential new UK store opportunities.