K&D continues to trade, remains unsold
Kemp and Denning Ltd rejects potential buyers
Kemp and Denning did not receive an acceptable offer to buy the business
Kemp and Denning did not receive an acceptable offer to buy the business
 
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The Tasmanian hardware chain will trade on unchanged with the same owners
Perth Now
Kemp and Denning did not receive an acceptable offer after calling for expressions of interest in January, according to chairman Ray Brown. The 112-year-old company was concerned about the potential for rationalisation of its 274 staff if it were sold.

It will continue to operate stores in Hobart, Glenorchy, Cambridge, Kingston and Devonport under the names K&D Warehouse Mitre 10 and K&D Trade. Brown told News Limited:
While the business had not been on the market after we were approached by an interested party and then entered protracted negotiations, we then invited other potentially interested parties to negotiate and that process has now concluded.

Three parties initially showed interest in the company and it was expected negotiations would have finished by the end of last month. At the time, Brown said changing industry and market conditions including greater competition from rival chains, had forced K&D's hand.

However, he said offers were rebuffed because they did not give the company's 609 shareholders a greater benefit than they already had. Woolworths subsidiary, John Danks & Son, made a $68 million non-binding indicative offer in May 2012 after an earlier offer of $40.1 million.

Kemp and Denning is a public unlisted company with 2,683,635 issued shares overwhelmingly owned by the Kemp family. Shares trade between $13 and $13.50, valuing the company around $36 million.

Last year, it reported an after-tax profit of a $1.2 million and $808,420 the year before.

Profit was $4.55 million in 2010. However, the critical point was a 4.4% reduction in revenue to $87.31 million as a result of a prolonged downturn in building activity.

A final dividend of 40c was paid giving shareholders a dividend yield of about. Brown said trading in the current financial year was slightly above last year.
Perth Now
Tasmanian hardware chain K&D are looking for new owners for the business
Indie store update
Tasmanian hardware chain K&D may have different owners by the end of next month. Its current owners are seeking expressions of interest from buyers for the business. Management says there are three interested parties already. In other news, Beaumont Tiles is also planning to have its new $11m distribution centre in Sydney's west open in the first half of this year. Managing Director Bob Beaumont says the NSW expansion plan is a vote of confidence in the future of the retailing and home improvement and construction sectors. A store in Warwick (QLD) is also successfully selling safety apparel and related products. All Safety Gear and Total Fire Protection Service has moved to a new premises and increased the number of products it is offering. Owned and operated by Joe Sciuto, the business had outgrown its old location. The new store is located in the old Mitre 10 building.
Tue, 21 Jan 2014 | 04:31


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