Forum Archive Index - August 2000

["NG" <zinovii@ihug.co.nz>]

Hi everyone ,

just fresh article about my favorite...

 

Wilson Neill's profit trebles

01.08.2000 - By GEOFF SENESCALL

Wilson Neill, in the midst of tying the knot with technology investor Jump Capital, nearly trebled its profit for the year ending March.

The former brewer and commodities trader, which has diced with bankruptcy several times, yesterday reported a $1.45 million operating profit, mainly off the back of its 24 Cobb & Co restaurants. This compared with a $568,864 profit the previous year.

The latest result is audited and is a precursor to relisting on the main board this year.

Last week, Wilson Neill executive director Paul Hyslop confirmed that the company was in talks with a potential investor. Market sources indicate that party is Jump Capital, whose investors include Sir Michael Fay, David Richwhite and Todd Capital. Jump is a registered bidder in the Government's radio spectrum auction.

Jump has yet to seriously bid for either second or third-generation spectrum, placing only a $552 bid for a small licence. It could be forced into a move shortly, as bidding continues to dribble along and the end of the auction looms closer.

Jump, with the backing of Ericsson New Zealand, is believed to be looking at Wilson Neill as a vehicle to roll out an Australasian cellular network.

It is understood to have done due diligence of the Wilson Neill subsidiary Radionet, a firm involved in high-speed broadband wireless technology for data communication.

Mr Hyslop declined to comment on any speculation connected with Jump.

Wilson Neill has gone from a company with no cash and no assets three years ago to a market capitalisation of about $70 million.

The bulk of its March-year revenue of $6.5 million ($3.78 million the previous year) came from its hospitality operation.

Last February, Wilson Neill bought Iguacu restaurant and bar in Parnell. Then in April, it branched into the information technology area by buying Onthenet Networks and Radionet.

More recently, it sold the Australian technology rights of Radionet to Australian-listed mining company Mt Conqueror in a scrip deal.

 

NG