SCY
30/04/2015 16:31
GENERAL
PRICE SENSITIVE
REL: 1631 HRS Smiths City Group Limited
GENERAL: SCY: Smiths City Building Insurance Claims Settled
NZX RELEASE
SMITHS CITY BUILDING INSURANCE CLAIMS SETTLED
The Directors of Smiths City Group Limited are very pleased to advise final
settlement of all insurance matters following the 2011 Christchurch
earthquake.
Payment has been received today of $5.6million (net of GST) in respect of the
damaged Colombo Street, Christchurch, buildings. This brings the total of
payments received for the site to $18million of which $7.2million has been
spent on returning the retail operation to pre-earthquake condition. The
balance of $10.8million related to the non-retail head office and rental
buildings. All other insurance claims in respect of stock and business
interruption were settled during 2011 and 2012.
Chairman Craig Boyce said "As a result of this final payment we can expect an
extraordinary profit of about $8.5million (pre tax) in the current year
ending to 30th April 2015. Of this $2.875million was received and recorded
in the first half accounts. Our head office is currently located in rented
premises at Watts Road, Christchurch, and will remain there with these
insurance funds directed to reduction in borrowings."
In an update on trading, Craig Boyce said "Retail trading conditions have
softened since the beginning of 2015 following a strong Christmas period.
This reduced demand, particularly in the rural and provincial areas,
coincides with the spring and summer drought on the east coast and
significant reduction in farm revenues from lower dairy and land prices. For
the final quarter ending today our retail sales will be in line with last
year as they were for the first nine months. However, as a result of cost
and margin pressures operating profits will be down over the second half.
This, however, will be compensated by the gains outlined above on insurance."
CRAIG BOYCE
CHAIRMAN
0295345508
End CA:00263745 For:SCY Type:GENERAL Time:2015-04-30 16:31:09