K&D says it’s back on track

KEMP and Denning shareholders have been told that the “bleeding has effectively stopped” at the embattled hardware retailer’s annual meeting in Hobart.

K&D Ltd chairman Greg Goodman yesterday said the iconic company expected to break even this financial year after a $9.8 million loss in 2016-17.

“We have now closed this very difficult chapter in our history and I am delighted to report the bleeding has effectively stopped,” Mr Goodman told the Wrest Point meeting.

The 115-year-old company closed stores in Devonport, Glenorchy and Cambridge and sold its trade division to Clennetts Mitre 10 during the year to extinguish $7.4 million debt.

“Your directors believe the potential for shareholders is greatly improved as a result of our efforts to quickly close loss-making operations and sell our trade business,” Mr Goodman said.

In an announcement likely to increase speculation about the future of the Melville St operations, Mr Goodman said there had been a revaluation of the company’s property assets by several registered Hobart valuers.

The assets were worth $18.25 million in 2015.

“While the variations have not yet been adopted by the board, it is pleasing to note that there is additional equity in our property holdings,” he said.

Hobart CBD property values are believed to have soared by at least 10 per cent since the Fragrance Group and University of Tasmania began strong buying.

Mr Goodman said each of the 2,683,635 shares in the public unlisted company had a net asset backing of $8.74 per share, making the company worth $23.4 million.

Recent share sales at $3 a share value the company at $8 million.

Directors were asked why a 2013 offer of $68 million from Woolworths, which was leaked to the Mercury, was never referred to shareholders.

“The offer submitted by John Danks and Son was non-binding, subject to due diligence and confidential,” general manager Jason Hutton said.

“At the time, the board believed that for commercial reasons the offer ought not to be disclosed to shareholders.”

Directors Susan AllisonRogers and Robert Rex were re-elected.

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