expects profit turnaround for 2006

- Friday - June 16: (RWE Aust Business News) - CCI
Holdings (ASX:CHL) expects profit after tax to be in the order of $3.2m
to $3.3m for 2006, a turnaround from the losses of $5m and $8.6m in 2004
and 2005 respectively.
The profit results should again reflect some abnormal items
generated from historical adverse leasing, investment accounting and
trade debtors issues, together with a costly business closure but should
be offset by a recovery on Pluton.
CCI said it was "surprised" to receive the takeover offer from
Campbell Brothers last week and while the formal approach is yet to
arrive the company has already rejected the proposal.
"The new team at CCI wants to get on with its growth plans,
rather than have its focus distracted by a costly, time-consuming and
unnecessary takeover offer," the company said.
The board of CCI Holdings has met and discussed last Friday's
announcement from Campbell Brothers and has been informed by shareholders
holding in excess of 35pc of its capital that they have no intention of
accepting the offer.
Such a rejection rules out the important 90pc minimum acceptance
condition of the proposed offer and renders it incapable of completion,
CCI said.
"In addition, the directors are confident that the important
improvements implemented over the last eighteen months at CCI have
created a profitable group with considerable potential," it said.
"They point out that it is only in recent months that the stock
market has started to re-rank CCI's shares.
"It appears quite clear that the proposed offer from Campbell is
designed to take advantage of the lagging nature of this re-ranking
process and is opportunistic.
"The directors also note that much of Campbell's announced
shareholding of 8.55pc in CCI has been secured through option agreements
and is further evidence of Campbell's opportunistic and predatory
attitude to CCI.
"In the circumstances, the board unanimously rejects the proposed
offer and advises shareholders to do likewise."