Tuesday 18th April 2017
|Text too small?|
Warehouse Group has entered into an unconditional contract to sell its Newmarket property in Auckland for $65 million and said the proceeds will be used to reduce debt.
Settlement of the property sale is expected to be completed in July 2017 and the sale proceeds of $65 million will generate a pre-tax gain of approximately $12 million, the Auckland-based company said in a release to the stock exchange. Further details will be provided when it announces its full-year result on Sept. 22.
The site will continue to be leased and operated by Warehouse until it is to be vacated in October 2018.
In March, Warehouse posted a 76 percent drop in first-half profit to $13.6 million after the retailer took an impairment charge against its financial services unit, recognised restructuring costs and earned less from its Red Shed department stores. Net debt stood at $263.3 million, with a gearing ratio of 33.5 percent. Warehouse's interest bill was $8.9 million in the first half.
At the time, it said weak trading had continued into the second half of the year and as a result, full-year adjusted profit was forecast to be $54 million to $58 million, a drop of as much as 15 percent from a year earlier.
The retailer is on a cost-cutting drive, cutting a net 130 jobs at its store support offices in Auckland and some regional centres, in a slimmed business structure to whittle down leadership into its two new arms and move support systems of the existing brands to be group-wide.
The shares last traded at $2.22 and have dropped 22 percent so far this year.
No comments yet
NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record