Woolworths open to acquisitions

WOOLWORTHS Ltd says it remains open to further acquisitions as work continues on its foray into the multi-billion-dollar hardware market.

Woolworths was committed to continuing its growth, managing director Michael Luscombe said in the retailer's annual report published on Thursday.

"We remain open to additional acquisition opportunities both in Australia and offshore but will continue to assess these in a prudent, considered and highly disciplined manner," he said.

There was also significant growth opportunities within Woolworths' existing businesses, through margin expansion and cost reduction, Mr Luscombe said.

"We will also continue to pursue complimentary revenue streams such as online channels as well as adjacent opportunities such as financial services," he said.

Woolworths' home improvement strategy was progressing well, with the first store expected to be opened in late-2011, Mr Luscombe said.

Woolworths and its joint venture partner Lowe's Companies Inc acquired hardware distributor Danks Holdings Ltd in 2009 in a bid to compete with market leader Bunnings, which is owned by Wesfarmers.

The annual report showed Mr Luscombe was paid a total of $8.33 million in the year June 30, in line with the previous financial year.

His base salary was $2.21 million, while short-term cash bonuses totalled $2.55 million and share options were worth $2.97 million.

Remuneration for Woolworths' management totalled $22.98 million in the year to June, down from $23.92 million in the previous year.

Woolworths shares were up one cents at $29.05 at 1338 AEST.