Smiths City shares continue surge

Shares in retailer Smiths City continued to surge today despite it telling the stock exchange it had nothing special to disclose to shareholders.

The company was queried by the exchange yesterday over an 11 cent, 17 per cent, rise in its shares since Thursday's close. The stock was up another 3c to 75c today.

Smiths City told NZX yesterday it was meeting its continuous disclosure obligations.

Another 52,000 shares traded in the first hour today while 194,000 shares worth traded yesterday.

NZX pointed out that the rise in its shares was on higher than usual volumes.

The "big yellow" retailer has been in expansion mode, buying Wellington's L V Martin, Star Appliances in Rotorua and Meikles in the Bay of Plenty over the last 18 months.

The Warehouse has been "in play" recently and further rationalisation in the retail sector is expected.

Smiths City had a net profit of $5.4 million in the April year compared with $8.7 million a year earlier, which was boosted by a tax credit of $3.6 million.

Pretax profit increased 0.4 per cent to $5.2m on operating revenue of $243m. On a same stores basis, revenue increased 0.5 per cent.

Company secretary Gerry Willis said: "I confirm on behalf of the board of Smiths City Group Limited that the company continues to comply with listing Rule 10.11'."

Continuous disclosure rules require listed companies to immediately release material information once the company becomes aware of it except when it is confidential and confidentiality must be maintained, or a proposal is incomplete, or still in negotiation, or when the information is a trade secret.

Smiths City shares rose 4c in early September to 64c after it told the annual meeting it was picking trade would improve early next year.

Initially listed on the NZAX market, Smith City fast-tracked on to the main board two years ago. It has a market capitalisation of $40 million.

- NZPA