Mr Chips tastes good for lucky few

Friday 28th May 2004

Mr Chips may not be the most liquid stock on the NZX but it still has a strong following among local investors.

As its name implies, Mr Chips processes and markets potato products, including French fries, prepared vegetables, quick frozen vegetables, kumara fries and Silver Fern-branded meat products sold mainly in New Zealand but also in Australia, the Pacific Islands and Asia.

The company last week reported a 100% increase in net profit to $2.03 million for the year to March on revenue of $35.3 million.

Settlement of a long-running insurance dispute contributed $230,000 after tax to the result and also removed a significant distraction to management.

The shares have traded in a tight range since leaping to all-time highs in 2000/01 partially due to the lack of liquidity but also because the company has just gone through an expansion phase.

Meanwhile, investors who have stuck with the company or have been unable to realise any gains due to the lack of liquidity (Dunedin businessman Eion Edgar owns 52.7% of the total shares) will be hoping the company can deliver its forecast of an improved dividend at the end of this financial year.

As it is, a final dividend of 3.5c a share will be paid on July 30 this year.

Comments from our readers

No comments yet