SCY 0.00% 14.0¢ smiths city group limited

Ann: GENERAL: SCY: Smiths City Building Insurance Claims Settled

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    • Release Date: 30/04/15 16:31
    • Summary: GENERAL: SCY: Smiths City Building Insurance Claims Settled
    • Price Sensitive: No
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    					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
    				
 
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