SCM rights issue after fine half

Press, 18 December 1986, Page 37

SCM rights issue after fine half

Smiths City Market Group is making a one-for-ten rights issue after more than doubling unaudited tax-paid profit in the six months ended October 31. Turnover for the period, at $lO9 million, was almost double the previous corresponding figure of $55.4 million. The directors reported a profit of $4,182,402 ($1,783,734) and said that they were particularly pleased with the improved rate of profitability relative to turnover. # They said a significant part of the increase was generated by sustained record pre-GST sales, coupled with the expanded base after the mergers with Irvin and Stern Holdings, Ltd, and Coles (Nelson), Ltd. “Because of the impact of these abnormal factors, the second half of this financial year should not be expected to contribute as much to the full year’s result,” the directors said.

“However, the directors are satisfied by trading since October 1, and the programme of expansion in the North Island is continuing with vigour and very pleasing

profitability.” The group now has 64 retail outlets and is progressing with the expansion of its customer finance activities.

Its four manufacturing companies have also achieved record increases in production. During the period, Smiths City Group Properties, Ltd, was established as the property investment and development company of the group.

It is involved in the Wairau Park industrial and commercial development in Auckland.

Meanwhile, the l-for-10 renounceable cash issue of ordinary shares is to be made at 120 c against latest sales of around 190 c.

Books close for entitlement on January 30, the same date as for the payment of the 1.5 c a share steady interim dividend.

Shares issued in respect of the interim dividend will not be included in the calculation of shareholders entitlements for the cash issue. Specified preference shareholders will also participate in the entitlement to the cash issue.