Adairs returns JobKeeper subsidies as profits rise threefold
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Pretax profit ($m) 63 v 19.9
Net profit ($m) 43.9 v 13.2
Interim dividend 13c, payable on March 25
Manchester retailer Adairs has returned $6.1 million in JobKeeper benefits after its interim profits rose more than threefold, but it is keeping the bulk of the $22 million in wage subsidies it received in calendar 2020.
Chief executive Mark Ronan said JobKeeper had enabled Adairs to support team members and stimulate the economy, but given the company’s performance it was appropriate to hand back $6.1 million of the $10.7 million received in July-December.
Adairs CEO Mark Ronan is handing back $6.1 million of the $22 million in JobKeeper subsidies the company received in calendar 2020.
3.35PM – Feb 16, 2021
Liam Walsh
Toilet and tap maker GWA is forecasting a recovery in Australian residential markets from March this year, but warned higher-margin work for commercial buildings will remain subdued in the short-term.
“You are starting to see consumer confidence is pretty high,” managing director Tim Salt told
The Australian Financial Review.
“On the commercial side, you’ve probably got it in reverse, the confidence is not there.” He gave the example of facilities such as hotels or airports not engaging in large work until certainty firmed about markets reopening and staying open.
Tim Salt, GWA managing director, said the company had maintained market share in Australia and gained in the UK and New Zealand.
What does 2021 hold for ASX retail shares?
More on: Image source: Getty Images
2020 was a tough year for the retail sector and many ASX retail shares. Shops were shuttered globally in the effort to fight COVID-19, putting a major dampener on sales. Retail sales in Australia fell more than 17% in April, the greatest fall on record.
While spending was down in the June quarter, the September quarter made up for it with sales rebounding above pre-COVID levels. Pent up demand was unleashed as restrictions eased, with retailers seeing a surge in volumes. Positive momentum continued into the December quarter, with Deloitte predicting growth of 2.6% in retail volumes over 2020.