NEW ZEALAND: The costs associated with Kathmandu Holdings' Initial Public Offering (IPO) blew out by over NZ$6 million, the retailer has revealed.
The costs incurred by the outdoorwear company's recent listing on the Australian and New Zealand stock exchanges were disclosed in its financial report for the half year to January 31 2010. Actual IPO costs incurred during the half year were NZ$21.3 million compared to the prospectus estimate of NZ$15 million.
The company said the extra NZ $6.3 million in costs was a result of higher than expected advisory fees and additional costs incurred as a result of a change in banking arrangements.
Excluding IPO costs and associated tax deductions, Kathmandu's net profit after tax for the first half of 2009/10 was NZ$4.4 million. Sales were up 27.5 per cent on the first half of 2008/09, to NZ$106.6 million.
Kathmandu Holdings' CEO Peter Halkett said he was pleased with the company's trading performance and attributed the sales and profit results to an improved retail environment and the achievements of Kathmandu's store roll out program and Christmas sales promotion.
The company also revealed it expects to exceed the prospectus forecast of 12 new store openings in the full financial year. Kathmandu opened eight new stores in the half year to January 31, with two new stores plus a store relocation expected to be completed by the end of March. Five new store sites currently being negotiated for opening prior to July 31.
The company is confident it will meet its full year prospectus forecast.