nta 10.4 cents - last trade 6.8 cents

Hi all,

Any thoughts on this one ?? Interesting to note volume above average of late.

NTA 10.4 cents
Last Trade 6.8 cents

On 19 January 2005 the Company completed a placement of 9,000,000 shares at $0.055 per share raising $495,000. In addition to the placement the company has undertaken a renounceable 1:4 rights issue at $0.055 per share to raise approximately $1,373,000. Funds raised via the placement and renounceable rights issue will be used to retire debt which will strengthen the company’s statement of financial position.

Merchandising Division
The Merchandising Division in general has performed in line with profitability forecasts by Directors even with severe water restrictions continuing in Melbourne, Sydney, some parts of the ACT and Queensland along with continuing general water restrictions in Adelaide and Perth. This division operates 38 merchandising outlets Australia wide under the names of Hugall & Hoile, Turf & Irrigation and T&I Pumps & Irrigation. The division also operate 10 Turf Product representatives mainly in the Eastern States. Our Top 10 performing branches were: Rockhampton (Qld), Townsville (Qld), Mackay (Qld), Midland (WA), Winnellie (NT), Bibra Lake (WA), Malaga (WA), Joondalup (WA), Willetton (WA), Rockingham (WA). The majority of future growth from this division will continue to come from the expansion of the merchandising branch network in the eastern states of Australia as and when water restrictions are eased, along with the introduction of new products.

Wholesaling Division
This division is the Australian importer and distributor of Rain Bird irrigation products; a range of European and Asian based water garden ponds, pumps and water features; Olex irrigation cable and Aqua Master aerators and fountains; and the distributor of Lowara pumps in Western Australia, South Australia and the Northern Territory. The wholesaling division operates distribution warehouses in Perth, Adelaide, Melbourne, Sydney, Brisbane and Darwin. The first half has seen profits in line with Directors forecasts. The majority of future growth from this division will continue to come from expanding wholesale distribution activities Australia wide and by way of exclusive distribution of new products and other markets such as the hardware and nursery industries.

Review of Results
The Directors of Hugall & Hoile Limited are pleased to announce our half year results which are in line with Management forecasts despite water restrictions through out Australia. The Directors would like to point out that in addition to the Group consolidated Revenue of $22,315,000 there were inter-company sales from our Wholesale Division to our Merchandising Division of approximately $2,174,000. These sales were generated with commercial Gross Profit margins in place and were eliminated on consolidation in accordance with Australian Accounting Standards. There were also external sales by our franchisees of approximately $4,361,000, not included in the Group consolidated revenue. Taking the above into account the Group total sales including inter-company and franchisee sales were $28,850,000 for the first half. Inter-company and franchisee sales should be taken into account as sales generated by way of our marketing and promotional efforts. The Group net profit before tax was $1,097,624. Income tax relating to this profit will be partially offset by carried forward losses from prior periods.