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Chillers hot on the growth trail
INVESTMENT
FOOD distribution company Chillers plans to launch its KwaZulu Natal-based Get Fresh operation nationally and proceed with a R10-million rights offer with a view to acquisitions within the next two months. Shaun Curran, the company's chairman, believes these moves and further acquisitions will put the newly listed company on track for growth. Results for the year to February are due to be released in April, and Curran expects the company to meet its prospectus forecasts. These were turnover of R56-million (1996: R33.1-million) and earnings of 10.7c (7.64c) a share. But Curran is concerned that the share is still at its June 1996 listing level of 100c. Although there is reasonable volume, the share cannot seem to get market approval. While it hit 184c soon after listing last year, the share slumped to 85c after Chillers and Jeff Liebesman's Corpgro announced that a potential deal for Corpgro to buy a joint controlling interest in Chillers was off. "I understand we are small, new and young in market terms, and that there is some concern over the depth of management and the tightly held share pool," Curran says.
"We are looking for acquisitions and will hopefully be able to publish a cautionary announcement soon."
Curran says the company had high infrastructure costs in the year to February, but the benefit will be seen next year. He says Get Fresh has doubled turnover in the last six months. Apart from becoming a national distributor, Get Fresh will have separate sales and distribution to Chillers, which is very much associated with the OK Group. This will give the company the opportunity to pick up extra business with other retailers. Invoice sales have been growing fast and there is no sign of them slowing.
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