Smiths directors applauded after share price doubles

By Chris Hutching

Friday 10th September 2004

Many company chiefs would wish for the reception that Canterbury-based Smiths City directors received at the end of the annual meeting held on Monday.

Shareholders gave them a hearty round of applause for their efforts, amid hints a new push into the North Island is imminent.

The department store company's last big foray into the Auckland market was when it bought the Smith & Brown chain in 1987, just before the sharemarket crash. The result was near-oblivion in the form of a receivership that lasted several years through the 1990s.

But under the stewardship of chairman Craig Boyce and managing director Rick Hellings, who now own about a third of the stock, the company has re-established itself and relisted on the main board of the stock exchange. The share price has doubled in recent weeks from 40c to 80c, as institutions took stakes, before settling back to 70c this week.

Sales for the four months to August 31 were up 5% on last year and profitability is holding.

The company recently posted a sound after tax profit of $4.33 million.

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