BIL
27/11/2015 16:26
HALFYR
PRICE SENSITIVE
REL: 1626 HRS Bethunes Investments Limited
HALFYR: BIL: Interim Result for the six months to 30 September 2015
Announcement to NZX
Interim Result for the six months to 30 September 2015
The directors of Bethunes Investments Limited (BIL) announce a loss of
NZ$1.84mln for the six months to 30 September 2015.
This disappointing loss is solely attributable to Peter Webb Galleries
Limited (Webb's), which continued to experience difficult trading as the
business down-sized and worked through the restructure process as discussed
in detail at the BIL annual shareholder meeting in July and within the
subsequent capital raising documentation.
The conditional sale of Webb's (announced 27 October 2015) now allows this
business to be held in the balance sheet at its expected net sale price and
this has resulted in a further impairment of NZ$1.083mln on Webb's carrying
value that is recorded in this interim result.
The directors acknowledge that any loss is a concern but given the
re-capitalisation and debt restructure that took place post the 30 September
2015 interim balance date, the directors refer shareholders to page 12 of the
interim results and profoma balance sheet (post recapitalisation) based on
the 30 September 2015 balance sheet, that provides a more accurate portrayal
of the company's financial position.
The quantum of the debt restructure was approximately NZ$519,000 of which
NZ$389,000 was cash saved and NZ$130,000 via the issue of shares in lieu of
cash. Total cash raised in the re-capitalisation was NZ$1.405mln, which was
utilised to settle all liabilities of the group at that time. BIL remains in
a net cash position as at 27 November 2015.
As previously advised, and given shareholder approval (a shareholder meeting
will be held in January 2016), we expect the sale of Webb's to complete on 31
January 2016. Unfortunately that will result in a loss on the capital
invested in Webb's post balance date. Traditionally the first quarter of the
calendar year is a loss period in an auction business. In reaching agreement
with the purchaser of Webb's, BIL will share a portion of these losses.
The directors believe that with this sale they have achieved the best
possible outcome for both BIL shareholders (whereby the real prospect of
further losses in the short term has been mitigated), and for the Webb's
business, clients and staff, we have found an experienced operator in
Melbourne auction house, Mossgreen, who will add significant value to the
foundations laid by BIL.
The Future
We have identified two investment options that meet the criteria discussed at
the annual shareholder meeting in July. Consequent to the completion of the
Webb's sale it is the directors' intention to progress these opportunities.
The directors are also considering the merits of a share consolidation and
the need for a further rights issue to finance future acquisitions.
Christopher Swasbrook
Chairman
Bethunes Investments Limited
27 November 2015
End CA:00274265 For:BIL Type:HALFYR Time:2015-11-27 16:26:28
