Postie Plus plans to double market share; acquisition process underway

Tuesday 13th December 2011

Clothing retailer Postie Plus Group says it is eyeing acquisition targets aiming to double its size of market share despite weak demand from households and a small net profit.

The retailer’s favourable debt ratio and sound balance sheet means it “would expect to add at least another brand to the collection by the end of next year,” said Ron Boskell, chief executive at Postie Plus.

The Christchurch-based company is looking to double its size through organic growth and acquisitions, he said at the company’s annual general meeting today.

“An acquisition will not only provide sales and profits but most importantly leverage the very good back office we have and provide very good systems for new businesses,” Boskell said.

Postie Plus chairman Richard Punter said, “in short we have identified a number of potential target retailers in New Zealand whose performance we have been monitoring carefully.

“Recent small acquisitions in the Schooltex area have been earning positively. The directors believe the group is ready to take a prudent incremental growth step and we have sought external investment banking advice in identifying prospective opportunities,” said Punter.

The retailer boosted net profit 58 percent to $656,000 in the 12 months ended July 31. Its revenue increased 1.7 percent to $115.7 million. Its shares are currently trading at 23 cents.

BusinessDesk.co.nz

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