Archive | Pumpkin Patch

Propbd on Q T5Aug14 – Big tick for Goodman fee change, NPT stake cut, new lowball offers

Goodman fee restructure support just a few votes off 100%
Mint reduces NPT stake
Zero Commission makes 2 new lowball offers

5.20pm:
Goodman fee restructure support just a few votes off 100%

Goodman Property Trust unitholders voted 99.79% in support of a new management fee structure at the annual meeting at the trust’s Highbrook business park today.

  • Meeting story to come overnight.

Earlier story, 16 July 2014: Goodman manager proposes incentive to make development land income-producing faster

Mint reduces NPT stake

Mint Asset Management has dropped its stake in NPT Ltd (ex-National Property Trust) from 7.2% last October to 5.8%.

Zero Commission makes 2 new lowball offers

2 listed companies, Tower Ltd & Pumpkin Patch Ltd, told the NZX today Zero Commission NZ Ltd (Roy Jackson & Phil Briggs, Oneroa, Waiheke Island) had given them notice of an intention to make lowball offers to shareholders.

Tower said Zero Commission’s offer to holders of parcels of 200-750 shares would be at $1.72/share, 10c below yesterday’s closing price but only 7c below today’s close.

Tower chief financial officer Michael Boggs warned: “Shareholders accepting Zero Commission’s offer should be aware they are likely to be in the position of being an unsecured creditor of Zero Commission during the period between their shares being transferred to Zero Commission and receiving full payment from Zero Commission.”

Zero Commission offered 36c/share for parcels up to 3000 shares in Pumpkin Patch. That was 5c below yesterday’s close, 8c below today’s.

Home sales & listings slide but prices hold, says Barfoots chief

Barfoot & Thompson said today its residential listings reached a 7-month low at the end of July.

Managing director Peter Thompson said sales dropped from 1037 in June to 983 in July and the average sale price rose less than 1%, from $714,054 to $719,312 in July.

Story: Barfoots chief says sales & listings slide, prices steady

Attribution: Annual meeting, company releases.

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Pumpkin Patch to appoint administrators to UK subsidiary

Published 19 January 2012

Pumpkin Patch Ltd said today it would appoint administrators to its UK subsidiary, which has 36 stores.

The decision follows an extensive review of the operation by management & external UK-based advisors.

Group chief executive Neil Cowie said the return on investment hadn’t been acceptable. He said cash costs of reorganisation were expected to be $3-5 million, non-cash costs $25-27 million, with a pretax impact of $11-13 million. A number of items, such as the mark-to-market losses on forex contracts, were already provided for.

Although he said the administrators might decide to close some or all of Pumpkin Patch’s shops, he added: “We are confident there is a place in the UK market for our brands. This is supported by our fast-growing UK online operation and the fact that 750,000 customers shopped at our UK stores over the last 18 months. In fact, the review highlighted a number of interesting opportunities for Pumpkin Patch and Charlie & Me in the UK, and we will be exploring these over the coming months. In the meantime we will be ramping up our existing UK online activities to continue supplying Pumpkin Patch product to our loyal & supportive UK customers.”

Mr Cowie said the decision didn’t materially impact on any other group company, including the New Zealand parent, the Irish subsidiary or the group companies that operate the 185 retail stores in Australia & New Zealand, the 20 international wholesale markets and the online businesses operating in 5 international markets.

Pumpkin Patch’s Australian & New Zealand Christmas sales tracked well above last year, but Mr Cowie said margins were slightly impacted by the need for more promotional activity. He said all the company’s online markets had grown strongly, early indications were that wholesale customers would increase their orders in the 2013 financial year and he hoped to confirm 2 new wholesale opportunities in the next 2 months.

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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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Pumpkin Patch to close 20 of its 35 US stores

Published 30 June 2009

Pumpkin Patch Ltd said today it would close 20 US stores.

 

The Auckland-based retailer of children’s clothes said in February it was reviewing its US operation with the aim of developing strategies that better met the difficult economic environment in that market. Chief executive Maurice Prendergast said the imposition of import quotas and the prolonged financial crisis in the US “has created significant headwinds for the profitability of the United States operation” and it would close 20 of its 35 US stores over the next 2 months – mostly the newest stores, which hadn’t yet gained traction. Most of those that stay open will be along the west coast. Mr Prendergast said Pumpkin Patch had renegotiated lease terms for 11of the remaining 15 stores at rental levels that better reflected current market conditions. Discussions on the remaining 4 stores are ongoing. Mr Prendergast said: “The plan we have outlined today allows us to build from a lower base in a much more structured way and enables the US company to go into the future with far more financial certainty. “Assuming no further deterioration in trading levels, the company expects the reorganised US store network to generate a close-to-breakeven earnings result at store level. Combined with a reduction in US head office costs, the segment is expected to generate a loss in the 2010 financial year in the region of $NZ3 million versus the analysts’ average forecasts of a $13 million loss. This will lead to a significant improvement in consolidated Pumpkin Patch Group earnings & cashflow results.” Mr Prendergrast said the company would recognise all reorganisation costs in the 2009 financial year. He expected non-cash costs of $30-34 million and cash costs of $6-8 million.

 

He said the reorganisation plan didn’t impact on the remaining 220 company-owned stores or any other trading segment, including the US wholesale company, because of the corporate structures employed in the US.

 

Other measures Pumpkin Patch has taken this year include cutting its bank debt by about 60%, significantly lowering inventory and realigning overheads. The company previously forecast year-end bank debt in a range of $30-40 million and now expected it to be at the lower end of that range.

                                                                                           

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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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