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Shenhua International Limited NPAT expected to be up 15%

Shenhua International Limited (SHU), one of the leading home textile manufacturers in China, today announced that, based on unaudited results, it expects to report a net profit of $13.5 million for FY2010. This will represent an increase of 15 per cent compared to FY2009 (FY2009: $11.75 million).

Sales for FY2010 were $121.0 million, an increase of 11.9 per cent and a record for the company (FY2009: $108.1 million). While the board will not declare a final dividend for FY2010 until the audited results are complete, it has already determined that this will be not less than one cent per share. During the year, Shenhua’s international (ex-China) sales grew, with export revenue rising 4.4 per cent to $84.7 million (FY2009: $81.1 million). The company’s penetration of the China market continued its momentum, and sales were $36.3 million in FY2010 (FY2009: $27.0 million).

The proportion of sales to China as a percentage of total sales increased five per cent to 30 per cent (FY2009: 25 per cent). The company continues to focus on increasing its sales of finished goods such as curtains, pillows and quilts, and the proportion of finished product sales grew significantly from five per cent of total sales in FY2009 to 12 per cent in FY2010. Shenhua receives a higher gross profit for its finished goods than for its fabrics alone, and has increased its investment in research and development to expand its range and business. New fabrics being developed include water resistant earthwork cloth and upholstery for aeroplanes and buses. Philip Widjaya, managing director of Shenhua said, “We are pleased to report a record profit in our first year as a listed company on the Australian Securities Exchange.

This reflects the success of our strategy to expand market share in China, and the company was able to increase its international sales despite difficult markets in developed countries. ” “Increasing urbanization and consumer affluence are driving our sales in China, and we plan to take advantage of the growing economy through the gradual establishment of direct sales centers and expansion of our sales channel. ” “Internationally, while sales to developed markets remain flat with constrained discretionary spending, we are increasing our sales focus on the fast-growing emerging markets of Africa and South America.”

Shenhua International Limited is one of the leading home textile manufacturers in China, specializing in the manufacture of high-quality fabrics for internal furnishing and decorative use and also producing finished goods such as curtains, pillows and curtains.

Established in 1999, its operational headquarters are based at Yangxunqiao town in Zhejiang Province near Shanghai. The company employs approximately 1,000 people and sells internationally to 49 countries. Shenhua listed on the Australian Securities Exchange in July 2009 and its ASX code is SHU. Tao, Xue Company Secretary Phone: +61 3 9654 1988 E mail: snowave.xue@gmail.com.

Queensland based listed child care operator G8 Education Limited (GEM) is pleased to announce a proposal to acquire two childcare centres in Sydney New South Wales.

A legally binding Heads of Agreement has been signed for the two centres with the vendor. The Heads of Agreement is subject to due diligence and National Australia Bank consent.

Transaction Summary: Two child care centres, 180 licensed places The acquisition of the additional two centres will be conducted through the issue of scrip and a performance based cash payment. The total consideration for the two centres is capped at 4 times centre based EBIT for the 2011 financial year. The total forecast centre based EBIT for the two centres for the 2011 financial year is $701,373. G8 Education Limited will issue 2,805,493 shares in total at an issue price of $0.60 per share. In addition, a performance based cash payment will be made on 31 August 2011 based on the audited performance of the two centres for the financial year ended 30 June 2011.

The maximum cash payment will be $1,122,196.80. Chairperson Jenny Hutson said “The acquisition of these additional centres will provide G8 Education Limited the opportunity to increase the geographic diversity of the group and further leverage the expertise of the head office team in a way that is earnings per share accretive. This acquisition is a further step in G8 Education’s well planned expansion strategy.” Jenny Hutson Chairperson P: 07 3009 9800 E: jhutson@wellcap.com.au.

Queensland based listed child care operator G8 Education Limited (GEM) is pleased to announce a proposal to acquire two childcare centres in Sydney New South Wales.

A legally binding Heads of Agreement has been signed for the two centres with the vendor. The Heads of Agreement is subject to due diligence and National Australia Bank consent.

Transaction Summary: Two child care centres, 180 licensed places The acquisition of the additional two centres will be conducted through the issue of scrip and a performance based cash payment. The total consideration for the two centres is capped at 4 times centre based EBIT for the 2011 financial year. The total forecast centre based EBIT for the two centres for the 2011 financial year is $701,373. G8 Education Limited will issue 2,805,493 shares in total at an issue price of $0.60 per share. In addition, a performance based cash payment will be made on 31 August 2011 based on the audited performance of the two centres for the financial year ended 30 June 2011.

The maximum cash payment will be $1,122,196.80. Chairperson Jenny Hutson said “The acquisition of these additional centres will provide G8 Education Limited the opportunity to increase the geographic diversity of the group and further leverage the expertise of the head office team in a way that is earnings per share accretive. This acquisition is a further step in G8 Education’s well planned expansion strategy.” Jenny Hutson Chairperson P: 07 3009 9800 E: jhutson@wellcap.com.au.

Queensland based listed child care operator G8 Education Limited (GEM) is pleased to announce a proposal to acquire two childcare centres in Sydney New South Wales.

A legally binding Heads of Agreement has been signed for the two centres with the vendor. The Heads of Agreement is subject to due diligence and National Australia Bank consent.

Transaction Summary: Two child care centres, 180 licensed places The acquisition of the additional two centres will be conducted through the issue of scrip and a performance based cash payment. The total consideration for the two centres is capped at 4 times centre based EBIT for the 2011 financial year. The total forecast centre based EBIT for the two centres for the 2011 financial year is $701,373. G8 Education Limited will issue 2,805,493 shares in total at an issue price of $0.60 per share. In addition, a performance based cash payment will be made on 31 August 2011 based on the audited performance of the two centres for the financial year ended 30 June 2011.

The maximum cash payment will be $1,122,196.80. Chairperson Jenny Hutson said “The acquisition of these additional centres will provide G8 Education Limited the opportunity to increase the geographic diversity of the group and further leverage the expertise of the head office team in a way that is earnings per share accretive. This acquisition is a further step in G8 Education’s well planned expansion strategy.” Jenny Hutson Chairperson P: 07 3009 9800 E: jhutson@wellcap.com.au.

The Directors of Harvey Norman Holdings Limited announce that sales from the franchised “Harvey Norman” complexes, commercial divisions and other sales outlets in Australia, New Zealand, Slovenia and Ireland (excluding Singapore) totalled $6.08 billion for the year ended 30 June 2010, compared to $6.03 billion for the year ended 30 June 2009, an increase of 0.8%.

Like for like sales for the year ended 30 June 2010, when compared to the year ended 30 June 2009, have increased by 0.2%.

It should be noted that the above sales data has been negatively affected by a 2.1% deterioration in the NZ$, a 17.3% deterioration in the Euro and a 20.9% deterioration in the UK Pound.

 Under constant currency New Zealand and Slovenia had a positive quarter due to improving conditions. Ireland continues to be close to line ball with last year.

Sales from the franchised “Harvey Norman” complexes, commercial divisions and other sales outlets in AUSTRALIA is as follows: Lead retail indicators in Australia show a sharp decline in household disposable income (HDI) and consumer sentiment for the last quarter.

Sales from the franchised “Harvey Norman” complexes for the last quarter indicated the following: Furniture and bedding continue to take market share despite the industry experiencing a slow-down with the dampened housing market. Electrical had softening sales but strong transaction growth highlighting deflation in the flat panel market.

Computer sales weakened as the company cycled the small business tax break on top of the cash stimulus.

Yours faithfully Chris Mentis Chief Financial Officer.

$22.8 million profit before tax for half year Consistent with previous record result A. P. Eagers Limited ( APE) has confirmed that its profit before tax for the June 2010 half year was consistent with the company’s previous record half year result. The company’s 2010 half year profit before tax (unaudited) was $22.8 million.

This includes costs relating to the acquisition of new businesses of $0.7 million which would have been capitalised in previous years but were expensed in 2010 in accordance with the revised international accounting standard. The 2010 result is therefore in line with the previous record half year result of $23.1 million which was achieved for the June 2009 half year. As reported previously, the June 2009 half year result included the initial positive impact of the federal government’s economic stimulus measures announced in the May 2009 federal budget, most notably the 30% investment allowance. Matching the 2009 record half year result in 2010 is viewed as a creditable achievement, particularly during a period of rising interest rates and increased retail competition as industry vehicle inventory returned to more normal levels. The company’s final audit reviewed result for the June 2010 half year will be released in late August.

For more information, contact: Martin Ward Chief Executive Officer (07) 3248 9455 or visit: www.apeagers.com.au.

Tatts Group Limited (TTS) said it was writing off $140 million off the value of its Talarius investment in the UK, as well as taking another $25 million hit on the value of the software used by its Maxgaming business. Despite this the gamer said it would be paying a dividend not less than the final dividend paid in October last year.

Despite what Tatts said were improving conditions for Talarius through 2010, it was still struggling to overcome the GFC as well as other adverse decisions including a smoking ban.

Meanwhile, the latest UK government budget, which includes a hike in the country’s VAT to 20%, was expected to further impact the business.

Tatts said the new carrying value of Talaris was around $180 million.

At 1023 AEST, Tatts Group shares were trading down 2c to $2.23.

The Reject Shop Limited (TRS) confirmed that its chairman Brian Beattie would step down from the post following the company’s next board meeting on 14 July. At the same time the discount retailer reaffirmed previous guidance of a post-tax profit of around $22.5 million for the year to 30 June.

Last year, The Reject Shop reported a post-tax profit of $19 million on sales of $412.2 million.

Meanwhile, the company said that current non-executive director, Bill Stevens, would replace Mr Beattie as chairman.

Mr Stevens said Mr Beattie’s focus on basic retailing principles had been a significant influence on the company.

”During this time the business has grown significantly from approximately 100 stores at the time of listing to 196 presently while seeing sales grow almost three-fold,” Mr Stevens said.

At 1120 AEST, The Reject Shop shares were trading up 2c at $16.52.

GUD Holdings Limited (GUD) announced the successful completion of its $40 million fully underwritten Institutional Placement as it prepares to fund the proposed acquisition of Dexion Limited (DEX). The company said the placement was oversubscribed with demand from both existing and new Australian and international institutional investors.

Shares were placed at $8.30 each.

GUD said it intends to offer eligible shareholders the opportunity to purchase shares through a Share Purchase Plan (“SPP”) to raise up to $15 million at the lower of $8.30 per share.

The company said the SPP offer would open on July 5 and is expected to close in late July.

As at 1126 AEST, GUD shares were down 14c to $8.51 after being lifted out of a trading halt prior to the commencement of trade this morning.

GUD Holdings Limited (GUD) shares were halted ahead of the company’s announcement that a takeover offer for Dexion Limited (DEX) would be funded via a mix of existing cash reserves and bank facilities, a fully-underwritten $40 million institutional placement and a non-underwritten share purchase plan (“SPP”) for up to $15 million. GUD said under the takeover offer, it is offering Dexion shareholders 80c cash for every Dexion share, equating to an equity valuation for Dexion of $84 million.

The company said the Dexion directors unanimously recommend the offer to shareholders and all Dexion directors who own or control Dexion shares have indicated their intention to accept the offer, in the absence of a superior proposal.

GUD managing director Ian Campbell said the rationale for the transaction is compelling.

“The acquisition will provide a significant growth platform for GUD, adding an international dimension to the company as well as providing access to growth sectors in distribution and third-party logistics,” MR Campbell said. 

”GUD’s managerial skills and financial resources will enable us to take full advantage of the market opportunities available to Dexion.”

He added that the enlarged GUD would be a more balanced and diversified business, with a strong presence in both commercial and consumer markets.

The company expects the transaction to be earnings per share accretive in the first full year of ownership.

GUD said it proposes to lodge its Bidder’s Statement shortly and anticipates the offer being open for acceptance early next month. The offer is expected to close in early August.

Meanwhile, the company said the Placement has been fully underwritten by J.P. Morgan Australia Limited and Macquarie Capital Advisers Limited at $8.30 per share.

GUD said the launch of the SPP is expected on July 5, with shares being offered at the lower of the Placement price of $8.30 each.

The company also announced its intention to suspend its share buyback program.

GUD said it expects full year EBIT to be at the top end of its previously announced guidance of between $64 million to $68 million.

As at 1115 AEST, GUD shares remained halted at $8.65, while Dexion shares were up 5c to 77c.