Speirs Group calls special meeting to vote on Unlisted move   30 May 2016

Monday 30 May 2016 01:38 PM

Speirs Group calls special meeting to vote on Unlisted move as NZAX winds down

By Jonathan Underhill

May 30 (BusinessDesk) - Speirs Group shareholders are to vote on migrating to the Unlisted platform instead of remaining on the NZX when the NZAX winds down.

Shareholders of the food company will consider two resolutions at a special meeting in Palmerston North on June 27 - to delist from the NZAX market and, if that's approved, have the shares listed on Unlisted. It said NZX had already conditionally approved its delisting from the NZAX, pending the shareholder vote, as the stock market operator prepares to wind up the NZAX.

Speirs first listed on the NZX in 2003 and the shares peaked at $1.529 in November 2006. They last traded at 11 cents, having declined about 39 percent in the past 12 months. It said listing on the Unlisted platform would be cheaper and its less formal structure was "more appropriate for the company considering its size and business".

Interests associated with the family of founding director Nelson Speirs own about 45 percent of the company, according to the company website. Nelson Speirs was appointed a director in 1966.

In the six months ended Dec. 31, sales fell 0.4 percent to $9.26 million and the Marton-based company posted a loss of $326,000, from a profit of $511,00 a year earlier. Earnings fell at Speirs Food, Rosa Foods and Advaro Financial Services, which "suffered a significant and unexpected setback" when its technology provider, Intagr8, went into voluntary liquidation in December.

It recorded a small gain from the sale of its shares in Allied Farmers but it said at the time that the one-time gains it had been able to accumulate from that sale and the establishment of Advaro were unlikely to be repeated in the foreseeable future.

"This means the group will be reliant on its wholly owned subsidiary Speirs Foods and shareholdings in the other trading businesses – particularly Advaro Finance and Rosa Foods to generate future profits," chairman Derek Walker said. "Whilst the results from this period are disappointing we are working hard to improve the performance of these trading businesses and grow shareholder value."

A spokeswoman for NZX said the stock market operator has been "working closely with the company on its future requirements and we acknowledge that it no longer wants to be listed on a licensed NZX market."

(BusinessDesk)

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