what the future holds - December 2010Mark Spring December 20, 2010 : 0
A couple of weeks ago, I spoke to Sunday Star Times Business Editor Rob O’Neill who took a great interest in our fresh incentives and aims for the company and our staff. I’ve given a summary of what we discussed below.
Our original three year plan included three basic goals: to restore profitability and achieve an Earnings Before Interest and Tax (EBIT) of $3 million within three years; to be regarded as one of the most respected mid cap companies in New Zealand in financial services and retail; and to share 15% of any growth in company value with our staff through our Long Term Incentive Scheme (LTIP).
We believe rewards like the LTIP are an excellent way of involving employees, as they gain a stronger stake in a successful outcome. We have found tools like this to be remarkable in re-engaging staff. Increased revenue and profitability are obviously important, but articulating a true story that staff and customers identify with and want to be part of in the months and years ahead is what comes first. Get this right, and the financials tend to fall into place.
A big priority of rebuilding dtr after a few years of poor performance was to work on the brand, the store presence, product relevance and customer experience. Four years on from 2006’s management buyout, which has seen many of these changes, an average 15% increase in sales after store refurbishments prove the worth of such investments.
As 2010 comes to a close and with dtr 21 stores strong, we now look to add locations, services and products. We have identified another 21 locations which all have the potential to add great value to our business. What will always remain a strong part of the nature of dtr is our drive not just to serve communities, but be part of them. It’s the unique towns that we have catered to for generations that make dtr the business it is today.
With Christmas right upon us, dtr expects to look back on a strong festive season, matching last year’s 20% year-on-year improvement. And for the new financial year we forecast a further 10% rise in sales, pushing 2011 total revenue close to $35 million. Make sure to flick through this year’s annual report, which you can view as a PDF via the tab above…the future is looking bright!