SCY Chart

[CD_CHCH]

The directors have stated "While the sale gives the Smiths City business a strong foundation on which to build, Directors believe Smiths City’s ordinary shares will retain no value following the sale."

Perhaps shareholders would be better off voting against the sale and taking their chances at recovering some of the NTA value as a vote for the sale seems to be a vote for a guaranteed loss meaning no upside for shareholders.

[winner69]

The directors have stated "While the sale gives the Smiths City business a strong foundation on which to build, Directors believe Smiths City’s ordinary shares will retain no value following the sale."

Perhaps shareholders would be better off voting against the sale and taking their chances at recovering some of the NTA value as a vote for the sale seems to be a vote for a guaranteed loss meaning no upside for shareholders.

Probably nothing left for shareholders whatever happens ....a NO vote = receivership

[Ogg]

Best option would be to vote no.

Very likely a counter offer or new bidder emerges.

Deal looked rushed.

Timing of takeover seems opportunistic.

No mention of independent evaluation report, this should be conditional.

Why is trading suspended? Market is clearly informed of situation.

[winner69]

Directors desperate to salvage something from thr train wreck

Don’t have much of a story to sell to shareholders this ‘sale’ a good idea do they

Losses mounting day by day

Receivership / administration any day now

Only thing they’ve got right is nothing left for shareholders

[nztx]

Agree with both of you - Ogg & Winner

A No Vote may well force the buyer to either negotiate with Liquidator / Receiver or make a takeover offer

The Board have screwed over shareholders IMO and should be held to account for this

It (the sell out ploy) does look rushed - symptoms of may be a Board caught out asleep & napping until too late,
then operating hastily after having had a big fright

No offer to existing shareholders for a Cap Raise either

There could be interesting questions on how Directors explain a reduction in NTA from 70c down to presumably nothing out of this
when they have authorised release of Financial Statements in just the past 6 months showing Net Assets far north of Nothing.

Do they have obligations to all shareholders arising out of this ?

I'm damned sure the existing Finance Company Book must have some pretty good value (subject to Covid-19 adjustment)

Why did they come out saying their bank ASB were happy financiers comfortable with things just a few weeks ago ?

Why the urgency to sell the jewels out to a Chilled out Investor with a curious liking for sorts of listed junk ?

Why does he need finance for this ?

[blackcap]

Agree with both of you - Ogg & Winner



There could be interesting questions on how Directors explain a reduction in NTA from 70c down to presumably nothing out of this
when they have authorised release of Financial Statements in just the past 6 months showing Net Assets far north of Nothing.
?

Why does he need finance for this ?

1. You have to wonder what value if any auditors actually add by looking at accounts and ticking them off.

2. If he needs finance he might be denied in this climate.

If I were a shareholder in SCY I would rather take my chances at liquidation than getting nothing so I would be voting NO. But thanks to Percy I sold out in the 40's so have watched the ensuing train wreck with horror. Told my father to get out in the 40's, he ended up selling last week at 13. something.

[CD_CHCH]

Smiths City confirms that it has made progress against the conditions for the sale of its business to Polar Capital. The sole outstanding condition is now Smiths City shareholder approval.

https://www.nzx.com/announcements/353466

Not sure how willing shareholders will be to vote for a guaranteed loss...

[nztx]

COLIN NEAL appears to be a bit presumptious that his Buy will actually go through, in flogging the SMITHS CITY Name for his new companies:



SMITHS CITY (2020) LIMITED

https://coys.co.nz/:entity?no=799625...020%29+LIMITED


SMITHS CITY HOLDINGS (2020) LIMITED

https://coys.co.nz/:entity?no=800656...020%29+LIMITED

[dubya]

I wonder if the head trougher (salary last annual report $520,000-530,000) will be keeping their job?

[CD_CHCH]

26-Jan-17 Half Year results $2.16 Million profit - up 67.2% on prior year

31-Jan-17 Share price $0.75

2-Jun-17 Smiths City to distribute $5.7m of capital (11 cents per share) - Smiths City still expects to pay a final dividend as it has in previous years

21-Jun-17 Smiths City Transformation Underpins Earnings Increase

19-Jul-17 Annual Report to year ended 30 April $2.0 Million profit - up 53.8% on prior year. NTA 97 cents. Total Yearly Dividend 3.5 cents per share.

25-Oct-17 Smiths City Group today announces it has deferred its planned $5.7 million distribution of capital following a continuation of tough trading conditions.

7-Dec-17 Smiths City launching in Auckland with two new stores

21-Dec-17 Half Year results - Net profit before tax ‘break even’ Board declares fully-imputed interim dividend of 1.0 cents per share. NTA 94.96 cents.

16-Jan-18 Smiths City today announces it has put in place a share buyback facility as part of its ongoing commitment to ensure shareholders benefit from the group’s underlying performance improvements. The new facility gives Smiths City the option to buy back up to 5% of its shares over the coming 12 months. Smiths City is in a strong financial position.

28-Mar-18 Smiths City names Alastair Kerr as Chair

17-Apr-18 Trading losses for the year are expected to range between $1.25 million and $1.75 million compared to a trading profit of $2.0 million last year.

11-May-18 Smiths City now accepts the Employment Court’s Decision that the meetings constituted work as defined by the Minimum Wage Act and that this resulted in some employees being paid below the statutory minimum.

29-Jun-18 Financial Results for year to 30 April 2018 - Net loss before tax of $9.9 million - down from a net profit of $2.0 million in the prior year. No dividend. NTA 80 cents.

24-Jul-18 Smiths City to align pay rates with the living wage.

5-Sep-18 AGM - But the company has been thwarted in its ambitions by underinvestment. Most notably, it has underinvested in systems and in the store network.

20-Dec-18 Half year results Net profit before tax rises to $0.6 million from break-even in the same period last year. Significant investment in the store network and group information systems still required.

1-Jul-19 Financial Results For The Year To 30 April 2019 Smiths City result improves as transformation continues. Net losses before tax narrow to $1.9 million from a net loss of $9.9 million in the prior year. No dividend. NTA 77 cents.

5-Sep-19 AGM - We remain well funded. Smiths City’s regeneration has over the last two years been about dealing with a legacy of under investment. We need to improve and invest in systems that give us better visibility on inventories. Smiths City’s transformation continues with the rationalisation of the store footprint and investments in store formats and systems

13-Dec-19 Half Year results - Net losses before tax of $3.8 million. No dividend. NTA 67 cents. We have completely reset the management of our stores and we are now starting to see improvements in like-for-like store growth, online and commercial sales and margins. While there is still much work to do, we are now in a better position than we have been for some time.

18-Mar-20 Smiths City trading update – Covid-19. At this time, we anticipate our net loss in our financial result for the year to 30 April 2020 will be greater than the $1.9 million net loss recorded in the prior financial year. However, we cannot at this time quantify the extent of this anticipated loss given the current uncertainties and just over six weeks of trading remaining in our financial year. Smiths City has been focused on transforming its business over the past two years. This work had been progressing well. But given these new uncertainties, management will be revisiting our transformation plan and looking for additional gains and further efficiencies.

30-Mar-20 Following discussions last Friday, Smiths City’s bank ASB has agreed to delay by four weeks, the repayment of $1.5 million of the company’s $65 million Senior Secured Facility due for payment on Tuesday 31 March 2020. While Smiths City believes it has enough capital to cover its debts as they fall due, the company recognises the current capital structure is not sustainable given the outlook and the company must secure more funding. Smiths City is working with PWC to develop a strategy for addressing its capital structure. Chief Executive Roy Campbell said: “The Covid-19 pandemic has caused an unforeseen and unprecedented shock to the business and – like many other businesses – is posing immense challenges. “ASB’s extension of the facility demonstrated its willingness to support Smiths City through this extraordinary period and give Smiths City the space to engage in discussions with potential investors.

6-May-20 Smiths City online has continued to trade, and while we are pleased with the support we have received through the lockdown, this has obviously not been enough to make up the shortfall in sales from the closed stores. Moreover, once we open our doors - potentially as soon as we move to Alert Level 2 - we anticipate facing subdued trading conditions. Smiths City is continuing discussions with potential strategic investors, as foreshadowed by its announcement to the NZX on 30 March 2020. The company continues to retain the support of its bank ASB to see these discussions through to conclusion. From the analysis the company has undertaken, a restructuring is clearly necessary in order to secure investment and have a sustainable, post-pandemic retail business. The Board has therefore proactively commenced this restructuring process as its investor discussions continue. Smith City Chair Alastair Kerr said while it was likely that the restructure will result in the closure of some stores and job losses, the final outcome is dependent on how the consultation and negotiation process unfolds.