CBD
Ka-ching! For most retailers, life over the past two years has been naught but woe, misfortune and penury. Just ask them.
Not so for the owner of Sussan and Sportsgirl, Naomi Milgrom, who last year extracted a hefty $20 million dividend from her fashion empire.
This brings the winnings that Milgrom, the daughter of retailing billionaire Marc Besen, has extracted from her group to $51 million over two years - a chunk of which has been funnelled into the arts. At about this time last year, when it was revealed that Milgrom had taken a $31 million dividend, the speculation was that some of the money would be donated to the National Gallery of Victoria, where she is a trustee.
"Although I don't normally discuss details of organisations I support, I have made a donation but that's really a matter between me and the National Gallery of Victoria," Milgrom told CBD on Monday.
Last year it was widely expected that art lover Milgrom was also to be appointed president of the gallery, replacing Australia's richest QC, Allan Myers. But when news of the mooted donation broke in The Age, Milgrom's appointment quickly became a disappointment.
Apparently snooty arty types regard public discussion of large wads of dosh as being a little like a Ken Done canvas - awfully vulgar.
The gallery gig went instead to veteran broker Bruce Parncutt of Lion Capital.
CBD has no idea if there's anything left of Milgrom's cash stash after giving to the NGV, but wonders if she's planning to follow the lead of Tasmanian gambler David Walsh and open up a private museum.
Together with her Sydney-based husband, John Kaldor, Milgrom has one of the best collections of contemporary art in the southern hemisphere, and the power couple already bring art to the masses through Kaldor Public Art Projects.
Walsh's Museum of Old and New Art sits in a Bond villain-esque bunker and CBD last spotted the man himself grinding to hip-hop with girlfriend Kirsha Kaechele at 2am in a Hobart laneway during his Mona Foma festival a week-and-a-half ago.
Don't hold your breath waiting for the rather more strait-laced Milgrom to emulate that kind of behaviour.
Holding up well
AS for Milgrom's business, accounts filed with the corporate plod by the main company in the group, ARJ Group Holdings, show it did pretty well in 2012.
"It's no secret the retail environment has been very difficult over the past two years, but our brands are holding up reasonably well in difficult conditions," Milgrom told CBD.
While all around it other denizens of the High Street were collapsing into administration, the fashion chain kept profit on track at $30.1 million for the 12 months to July 31, up slightly from $29.9 million in the previous year.
Having weathered the entry into the Australian market of fast-fashion specialists Zara and Topshop, the group's next big challenge will be dealing with the arrival of cheapie chain H&M, which is set to open stores in Sydney and Melbourne this year.
Dog-gone it
IT'S not even February and already the year's gone to the dogs for ASX chief Elmer Funke Kupper.
His greyhound, Elmer's Gift, was just out of the money two Saturdays ago, finishing fourth in race one at The Meadows despite being favourite.
Bad news for Guide Dogs Australia, which is getting Funke Kupper's half of any winnings.
It did better on the previous two outings at Cranbourne, placing second two weeks in a row.
The dishlicker, which was given to Funke Kupper by Tabcorp after he stepped down as CEO, hasn't won a race since November.
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bbutler@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
The article reports Naomi Milgrom took a $20 million dividend last year, bringing her total drawings from the group to $51 million over two years (including a prior $31 million). For investors, large owner dividends can signal that the business is generating cash and returning value to owners, but it’s also sensible to watch company accounts and dividend policy to understand sustainability and how much cash is being retained for reinvestment.
Accounts lodged by the group's main company, ARJ Group Holdings, showed the fashion chain made a profit of $30.1 million for the 12 months to July 31, 2012, up slightly from $29.9 million the previous year. That result suggests the group held up reasonably well despite a tough retail environment.
Yes — Naomi Milgrom is quoted saying the retail environment has been very difficult over the past two years but that her brands are 'holding up reasonably well.' The group maintained profit in 2012 while many other high-street retailers were struggling.
According to the article, the group has weathered the entry of fast-fashion specialists Zara and Topshop into the Australian market. That experience is presented as part of why the brands have been able to hold profit on track.
The article flags H&M’s planned openings in Sydney and Melbourne as the group's 'next big challenge.' For investors, the arrival of a low‑cost international chain can increase price and market-share pressure, so it’s worth monitoring sales trends, margins and any strategic responses from the group.
Milgrom confirmed she has made a donation to the National Gallery of Victoria but said the details are a private matter between her and the gallery. The article notes she is a trustee of the NGV and that some of the dividends she took have been funnelled into the arts, but it does not indicate any direct corporate impact from that philanthropy.
Yes. The article references accounts filed with regulators by ARJ Group Holdings as the source of the profit figures. For everyday investors, reviewing official filings is a reliable way to track profitability, dividend payments and trends that affect investment decisions.
The piece mentions Milgrom and her husband have a major contemporary art collection and that some dividend proceeds have supported the arts. While personal collecting and philanthropy are notable for owner profile and brand association, the article does not suggest these activities alter company operations — shareholders should instead focus on business results and strategy reported in company accounts.
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