KEY POINTS:
Retailing king Rod Duke says taking an increased stake in children's clothing company Pumpkin Patch was a personal move not linked to his Briscoe Group.
Duke, who owns around 75 per cent of the group running the Briscoes Homeware and Rebel Sport stores, purchased 6 million shares in
Pumpkin Patch through his family trust, Kein Gold, at $1.60 each on Wednesday.
The move took his stake in the company from 4.9 per cent to 8.37 per cent.
"I've been a holder from day one, but have just ducked under the radar at 4.9 per cent. I was very very happy to stay that way, so I wouldn't get calls from journalists, but this opportunity came up and I've always been keen on the company and to me it seemed like a pretty good price."
He was a fan of their clothing range, buying it for his then 5-year-old son, who is now 10. "I just thought it was a great company back then, and really everything I've seen since has just confirmed that. I think they're absolutely world-class - plus I might get a staff discount card as well."
But he was not seeking a seat on the board. "I think their business is quite different from mine and, at the end of the day, I've no desire at this point in time to become a director."
He would buy more shares in the company if the opportunity arose.
Listed at $1.25 a share in June 2004, Pumpkin Patch has been a market darling, climbing rapidly to a high of $4.95 early last year. But over the past year, its shares have dropped more than 60 per cent, closing on Thursday at $1.66.
Tough retailing conditions have seen half-year profits dive 23.7 per cent, although its operating revenue still increased by 13.5 per cent, in line with the company's compounding average growth rate since 2003.
Its New Zealand and Australian stores continue to perform well, but its British and United States expansion has hit some bumps.
Duke's increased stake comes courtesy of Fisher Funds, which has reduced its stake in the company from 13.85 per cent to 10.21 per cent.
Managing director Carmel Fisher said it remained committed to the retailer. "We've told the company that we are a committed shareholder, we are happy to have more than 10 per cent and look forward to the company doing great things.
"We just took the top off our holding."
With some share prices at their lowest in recent years, Fisher said it was taking the opportunity to raise its stake in its other shareholdings.
"A couple of clients have taken some money out so we've just realised some cash for that.
"I think it's prudent for any fund manager to have a little bit more cash in the bank than they normally would, just in case investors do want to pull their money out - we've has less than 1 per cent of the funds under our management go out the door, which is I think quite remarkable.
"It's proactive rather than reactive."
PATCH GROWS
* Briscoe Group boss Rod Duke buys 6 million Pumpkin Patch shares through his family trust.
* The move takes his stake from 4.9 per cent to 8.37 per cent.
* The 6 million shares were previously held by Fisher Funds, which drops its stake from 13.85 per cent to 10.21 per cent.
