Little from J. Smith

Press, 19 December 1986, Page 22

Little from J. Smith

PA Wellington James Smith, Ltd’s new directorate were not forthcoming on details of the company’s new direction at the annual meeting in Wellington. About 20 shareholders attended the meeting at James Smith’s Cuba Street, Wellington, store, which signified the last meeting at which they would be reviewing retailing activities. As from last August the James Smith retailing activities were absorbed into the L. D. Nathan, Ltd chain, leaving James Smith, Ltd with mainly retail properties, and cash which had been invested in shares and fixed interest securities. Few hints had been given about the company’s new direction in the annual report, which followed the same format as traditional reports.

A statement read to the meeting by the acting chairman, Mr Geoff Ricketts, contained little that had not already been alluded io briefly in the.report; that the building adjoining Arco

House in Cuba Street had been bought, various share and fixed interest investments had been made and directors were looking at other opportunities. Shareholders were promised a 1986-87 result significantly exceeding that achieved in the latest year. Some shareholders were confused about what the company was now doing. One shareholder asked why the company’s share price was trading at more than three times the stated asset backing. Shareholders, he said,

were not very informed as to the company’s state of affairs. “It’s nice to know our shares have increased in value, but what is the justification for it?” he asked. In reply, Mr Ricketts said he assumed the rise in share price reflected the significant increases in property values in Wellington in the past six to 12 months. He also told shareholders the directors had a particular opportunity they were still pursuing and he could not really add any more.