Shares rise at Pumpkin Patch

AUCKLAND: Pumpkin Patch shareholders breathed a sigh of relief yesterday after a buyback announcement saw shares surge by 14 per cent. Shares at the childrenswear company plunged to 79 cents on Friday, their lowest since first being issued at $1.25 in 2004 and a sharp reversal on a peak of $4.95 in January last year.

Chief executive Maurice Prendergast confirmed the buyback - which would see the company reclaim up to 8.35 million ordinary shares over the next year - was a first for the Auckland-headquartered company.

"The buyback reflects our belief in the true underlying value of the Pumpkin Patch brand and our confidence in the company's continued financial performance into the future."

Executives denied the move was as a result of takeover concerns resulting from its share price slump.