Kathmandu shares rise 5% on massive profit jump; Nine sets IPO for December: Midday Roundup
Tuesday, September 24, 2013/
Shares in retail group Kathmandu Holdings have increased 4.5% this morning after the company announced a full year net profit result of $NZ44.17 million – up 27% from the previous year.
The company said revenue increased 10%, with same store sales growth up 5.6%. Gross profit margin remained steady at 63%.
“We were successful in reducing operating costs as a percentage of sales,” chief executive Peter Halkett said in a statement.
“This continues to be a key priority and we are confident Kathmandu will achieve further efficiency improvements in the future.”
Halkett also said the company would continue to invest in new stores.
“We will continue to invest in our store network through opening new stores and relocating or refurbishing existing stores in Australia and New Zealand,” he said.
Nine sets IPO for December
Nine Entertainment will go public in December, it has been reported, with shareholders finally settling on a timetable.
The Australian has reported US hedge funds Apollo and Oaktree have agreed to the new schedule which will see the company go public in either November or December.
The float will operate on an earnings multiple of nine before EBIT.
Nine executives are also reported to be meeting with potential investors in Sydney this week.
Shares fall on weak offshore leads
The Australian sharemarket has opened lower this morning, following a weak night in offshore markets where investors are still coming to terms with announcements made by the Federal Reserve last week regarding monetary stimulus.
The benchmark S&P/ASX200 index was down 21.4 points or 0.4% to 5231.1 at 11.30 AEST, while in the United States the Dow Jones Industrial Average fell 49 points or 0.3% to 15,401.1.
The Australian dollar fell slightly to just above US94 cents.