Another stellar 3 month performance? Same store sales up 3.8% whilst all stores up 8.7%. Good growth in Canada and the US.

MHI
11/10/2013 12:41
QUARTER

REL: 1241 HRS Michael Hill International Limited

QUARTER: MHI: 3 months trading update to 30 September 2013

3 months trading update to 30 September 2013

The below figures represent 2 months accounting adjusted sales results plus
September preliminary sales figures prior to final accounting adjustments and
are unaudited. Same stores and all stores revenue figures stated below
include the Professional Care Plan (PCP) revenues brought to income during
the period. The PCP income recognition pattern is based on existing
estimates and subject to ongoing management reviews and accordingly may be
adjusted at half year and year end. The prior period PCP revenue stated below
is included at the estimated amounts under the income recognition pattern
used and reported on at the time.

In line with the market announcement on 3 October 2013, the Group numbers
below are reported in Australian dollars.

Revenue from the sale of goods and services for the 3 months to 30 September
2013:

The following figures are in Australian dollars Last Year
This Year % Var
Australia same stores 59,543,829 60,183,650 1.1%
New Zealand same stores 17,628,665 18,517,320 5.0%
Canada same stores 9,399,281 10,818,542 15.1%
United States same stores 1,775,706 2,155,811 21.4%
Total same stores $88,347,481 $91,675,323
3.8%

Australia all stores
61,369,042 64,718,588 5.5%
New Zealand all stores 17,661,287 18,559,669
5.1%
Canada all stores 9,580,949 13,049,267
36.2%
United States all stores
1,983,014 2,152,814 8.6%
Total all stores $90,594,292 $98,480,338 8.7%

Exchange rates used for the 3 months:
New Zealand 1.28 1.15
Canada 1.03 0.95
United States 1.04 0.92

The following figures are in local currency Last Year
This Year % Var
Australia same stores AUD 59,543,829 60,183,650 1.1%
New Zealand same stores NZD 22,623,440 21,228,962
(6.2%)
Canada same stores CAD 9,710,436 10,284,027 5.9%
United States same stores USD 1,841,461 1,973,756 7.2%

Australia all stores
AUD 61,369,042 64,718,588 5.5%
New Zealand all stores NZD 22,665,410 21,277,326 (6.1%)
Canada all stores CAD 9,895,766
12,406,901 25.4%
United States all stores USD 2,056,816 1,971,011 (4.2%)
*
* One store was closed in June 2013 hence the fall in revenue for "all
stores"

Revenue from sale of Professional Care Plans for the 3 months to 30 September
2013:

The following figures are in Australian dollars Last Year
This Year % Var
PCP revenue collected $5,069,333 $6,676,219
31.7%
PCP revenue brought to income $1,800,150 $3,929,059
118.3%

The Group achieved solid growth for the quarter finishing 3.8% up on last
year for the same stores. Australia traded slightly up on the same quarter
last year while Canada and the US continue to show good growth on a same
store basis. Our New Zealand stores were unable to maintain the momentum
shown in prior quarters and ended the period 6.2% down on the prior period.

Cash flow remains strong and our Professional Care Plan product continues to
deliver good cash flow to the business and is now also contributing solidly
to the Group's overall results. The revenue from these plans is carried on
the balance sheet as deferred revenue and is then brought to income over the
life of the plans (3 year plans, and lifetime plans which are assigned 10
year notional life for income recognition purposes).

Sir Michael Hill 11 October 2013
Chairman

All enquiries should be made to Mike Parsell CEO phone +61 403 246655
End CA:00242272 For:MHI Type:QUARTER Time:2013-10-11 12:41:28