Reject Shop's FY profit slips

Retailer confident a string of new stores will return it to profit growth in FY14.

The Reject Shop (TRS) says it is hesitant to estimate forward sales because of current economic conditions, but remains confident a string of new stores will deliver a return to profit growth after a fall in full-year net profit in fiscal 2013.

In the year to June 30, The Reject Shop's net profit was $19.45 million, an 11.3% decline on the $21.92 recorded in 2012.

The group said its results were affected by the fact fiscal 2012 included 53 weeks to fiscal 2013's 53, as well as material insurance proceeds received in both years relating to the flooding of the group's distribution centre in 2011.

In the same period revenue was $617.96 million, an 11.3% lift on the $555.30 in the previous year.

The Reject Shop will pay a fully-franked final dividend of 13 cents on October 14, to shareholders on the register as at September 27.

Combined with the group's interim dividend of 24 cents, The Reject Shop's total dividend for the year came to a fully-franked 37 cents.