Kirks eases onto main board

By Phil Boeyen, ShareChat Business News Editor

Monday 14th May 2001

Wellington retailer Kirkcaldie & Stains has had a subdued entry to the NZSE's main board.

Less than 9,000 of the company's shares changed hands today, with the last trade at $4.81, up 11 cents from the opening trade.

The company first issued shares in 1995 and has been considering shifting from the unlisted securities market for several years.

Chairman, Denis Tait, says the move offers several benefits to shareholders.

"These include making more investment information available, primarily through the quotation of share prices and relevant indicators in the national daily press."

Mr Tait says such things as dividend dates will also be better publicised and use of the FASTER share trading system will make transferring shares easier.

"The company's shareholder base is centred in Wellington where it enjoys great loyalty and interest from many private investors.

"Whilst acknowledging that local allegiance, the directors recognise that the best interest of shareholders will be in raising the profile of the company in the general marketplace. A national quotation will broaden investor interest and heighten general awareness of the company's investment potential."

Mr Tait says it will also enable institutional investors in the company.

Although the company says there are no current intentions to raise additional capital, "in time, opportunities may present themselves which require more funds and the listing will enable Kirkcaldie & Stains to take full advantage of an established market in its shares as a potential source of capital."

Kirks recently posted a lower interim profit of $1.01 million for the half-year ended February although sales improved 2.3% over last year to $18.8 million.

The other direct main board exposure to the department store sector for investors in New Zealand is via Dunedin-based operator, Arthur Barnett (NZSE: ARB).

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