Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Debt-free Brumby’s looks to acquisitions

Debt-free Brumby’s looks to acquisitions

November 14, 2006

Leading Australian and New Zealand bakery franchise operator Brumby’s Bakeries Ltd (BSX:BBH) announced today it would consider acquisitions after completing its debt reduction strategy next month.

Brumby’s managing director Michael Sherlock said the franchise group, which has more than 300 stores across Australia and New Zealand, had already identified several acquisition opportunities which it could pursue in the next 12 months.

“There are several food retailers who we believe could benefit from our management expertise while maximising value to shareholders,” Mr Sherlock said ahead of Brumby’s Annual General Meeting being held in Brisbane today.

“In the next year we will be investigating the opportunity to acquire other food franchise retail systems.”

Mr Sherlock said Brumby’s would be effectively debt-free in December after paying off the loan used in 2003 to buy back a 23.6 per cent stake in the company held by Goodman Fielder.

In September, Brumby’s reported a 21 per cent increase in net profit after tax for the full year to June 30, 2006 to $2.08 million, up from $1.72 million for the corresponding period the previous year.

The earnings increase was led by a growth in revenue of 19 per cent, from $8.35 million to $9.92 million, as well improved efficiencies in operating costs.

Since listing on the Bendigo Stock Exchange in December 2003, Brumby’s share price has more than tripled from $0.55 to its current price of $1.80.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news