Shares in Premier Investments jumped yesterday after it revealed an upgrade to its earnings forecast for 2009 because of better than expected sales at its Just Group retailing subsidiary.
Premier chairman Solomon Lew said fiscal 2009 had been a good year for the company, which saw the finalisation of its acquisition of Just.
"This has been a successful year for Premier Investments, which began with its acquisition of Just Group and finished with a pleasing result despite some very difficult trading conditions during the year," Mr Lew said in the statement.
The market liked the news, sending Premier shares up 24 cents, or 3.9% to $6.22.
Premier said sales for the 52 weeks ended 25 July 2009 of its 100% owned subsidiary, Just Group Limited were $845m (2H: $412m).
"This is a 4.0% increase over the prior year (2H: increase of 6.3%). Just Group’s like for like sales for the year were negative 1.6% (2H: positive 2.0%; 1H: negative 4.3%).
"Premier previously informed the market that it expected Just Group’s FY09 EBITA to be about 10% down on FY08 (excluding Just Group transaction costs).
"The audited FY09 results have not yet been finalised. However, given the better than expected sales performance outlined above, Premier now expects Just Group’s EBITA contribution to Premier will be within the range of $94m to $96m (2H range: $38m to $40m).
"On a comparable basis Just Group’s second half EBITA is expected to increase between 34% and 41% over 2H08 resulting in a full year EBITA increase between 2% and 4% above FY08.
"As previously announced Just Group’s 1H09 half EBITA was 13% below 1H08," Premier said in the statement.
Premier said it now expects its pre tax profit to be within the range of $106m to $108m.
Premier is scheduled to release its audited full year results on September 22.
Village Roadshow shares jumped sharply yesterday after the film and radio group revealed that its major shareholder is working on a proposal to privatise the company.
While the deal is only a ‘potential’ at the moment, as they all are before the numbers are crunched and all the ducks aligned in the most favourable way, the market reckons it’s a goer.
The shares jumped 21.5 cents, or just over 18% to $1.40.
That’s the highest since early last November.
Village, which owns theme parks, cinemas, a film distribution business and is the main owner of Austereo, the radio network behind Triple M and 2DayFm in Sydney, said it had been approached by Village Roadshow Corporation Pty Ltd (VRC) and informed that VRC is working on a proposal for the potential privatisation of Village.
VRC is controlled by John Kirby, Robert Kirby and Graham Burke, each of whom are executive directors of Village, all of whom control about 61% of the ordinary shares in Village.
That level of control has ruled out any other party getting interested in Village, and why the shares steadied at the day’s high yesterday.
‘‘VRC has informed Village that its work on the proposal is substantially incomplete and that a number of key issues are yet to be finalised, including the terms of any proposal and funding for any proposal,” Village said in a statement. Village has not received any formal offer or proposal from VRC.
"There is no assurance that any offer or proposal will be received by Village or put to Village shareholders.”
Village said if a privatisation of Village occurred, all the ordinary shares and preference shares in Village that are not owned by VRC or its associates would be acquired or cancelled.
The Melbourne-based company said it had established a subcommittee of the independent directors to consider any offer or proposal that may be made by VRC and any privatisation would be subject to shareholder, financier and regulatory approvals, it said.
In a separate announcement, Village said it would quit its cinema, film distribution and film production business in Greece by way of sale to a private investor.
The net cash proceeds from the sale would be about $80 million, with estimated profit expected to be in the range of $10 million to $15 million, subject to the exchange rate at the time of completion, Village said.
Village said there would be no material impact on the company’s reported earnings before interest, tax, depreciation and amortisation (EBITDA) and trading profit for 2009-10.
And vitamin and herbal supplements distributor Blackmores saw its shares rise 60 cents, or 3.8%, to $16.45 yesterday after it issued a modest profit upgrade.
The company told the ASX that it is now expecting a 9% rise in annual net profit after an unexpectedly strong fourth quarter.
That would push the full year figure above $20 million for the 2009 financial year after it earned $19.1 million in 2008.
That was up 14.5% on the prior year.
In a brief statement to the Australian Stock Exchange Blackmores said profit guidance would be about 9% above last financial year "following a stronger than expected fourth quarter".
