Uni units among K&D site options

A SUPERMARKET or university accommodation are among options being considered by Kemp and Denning for its Melville St, Hobart, site, says chairman Greg Goodman.

Recently released minutes of the company’s annual meeting disclose Mr Goodman told shareholders it was business as usual for the next 12 months while options for the site were examined.

Other opportunities were for residential development or hardware.

The 115-year-old company reported an annual loss of $9.8 million in 2016-17, blaming competition from Bunnings and Clennett’s Mitre 10 in the Tasmanian market.

When asked by a shareholder whether the future of the store as a retail outlet was in question, Mr Goodman told shareholders the vision for the company would be put to them.

“We will have a clearer picture in the next few months,” he said.

“If the company structure is to be changed to an investment company, shareholders will be asked to do this at an extraordinary general meeting.”

Mr Goodman reassured a shareholder who asked whether the board had the skills to execute a move into property investment.

When asked about staff morale, he told the meeting that he and general manager Jason Hutton would discuss the future with Hobart store staff.

The meeting was told Kemp and Denning had the 103 Melville St site revalued by several Hobart valuers.

It is understood valuations vary between $10 million and $22 million while the 90 Melville St site is valued between $1.6 million and $3.4 million.

The meeting was told that the company had asset backing of more than $8 a share.

However, in mid-September one of the company’s top 20 shareholders sold 28,653 shares for $3 each.

The company is understood to have sold the Kingston site, which was valued at $3.1 million, for $2.6 million.

The meeting was told that the company expected to generate a nominal cash surplus in 2017-18 with earnings before interest, tax and depreciation of $200,000.