Homebase first results under Wesfarmers

Wesfarmers has today published its first results since acquiring Homebase.

Like-for-like store transactions at Homebase are reported to have increased by 7.5%.

Divisional earnings of $1,214m (AUS) (which includes Bunnings Australia & New Zealand and Bunnings UK & Ireland) include restructuring and one-off repositioning costs.

The results presentation states that the re-positioning of Homebase is well underway, with Bunnings having implemented new trading strategies around merchandising, pricing, marketing and operations, as well as re-shaping the business with a home improvement and gardening focus.  

In addition, the report indicates that wider product choices and deeper stock holdings have been supported with an investment of approximately £60 million ($115 million AUS) in inventory.

Team engagement is understood to have been 'pleasing', and development investments have been made.  Steady training has taken place since the initial four months of ownership and disruption from change is stated to have been 'well-managed'.  

The new leadership team is well established and a special purpose Advisory Board is in place.

Wesfarmers states that transition, integration and separation activity is well advanced and many transitional services have already been terminated.

The report also states that between four and six Bunnings Warehouse pilot stores are expected to open in FY 2017. Wesfarmers reiterates that successful pilot stores are a pre-cursor to further investment.

View the full presentation here for further information.

Watch a video of Richard Goyder, MD of Wesfarmers, discussing Homebase: https://uk.finance.yahoo.com/video/optimistic-outlook-homebase-wesfarmers-050600868.html 

Source : Insight DIY / Wesfarmers
www.wesfarmers.com.au

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