Due to an improved retail environment, outdoor clothing and equipment retailer Kathmandu Holdings managed to escalate 27.5% in half year revenues to $106.6 million. The result also exhibits new stores and a strong Christmas promotion.

The company's net profit for the six months to the end of January increased $6.8m to $4.4m, excluding IPO costs and associated tax deductions, according to the announcement of its first result.

Six stores were opened in Australia and two were opened in this country. The company was quite confident of meeting its prediction of ebit at $50.6m and net profit of $30.9m, after the full year pro forma adjustments contained in the prospectus were allowed.

The effect of weather conditions on the winter trading period and the uncertainty that prevails in retail and variability in Kathmandu can influence the second half trading.

As already mentioned in the prospectus, no interim dividend would be paid, with a dividend of 6.7c per share for the second half depending upon the forecast being achieved or not.

According to Kathmandu IPO costs were put at $21.3m, as compared to the estimate of $15m mentioned in the prospectus. Kathmandu shares escalated to 7c to $2.26 in trading earlier.