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Book retailer A&R Whitcoulls Group has reported that its net profit in the year to September 2 rose eight-fold to $25.54 million.
The chain is owned by private equity company Pacific Equity Partners (PEP), which was involved in Stephen Tindall's now-defunct bid for The Warehouse.
There had been some speculation that PEP would marry Whitcoulls and The Warehouse stationery together and list the company. Tindall pulled the bid on Monday.
Whitcoulls' annual trading revenue fell to $373.7 million from $376.5 million, while the operating surplus was turned around to a pre-tax profit of $3.4 million from a loss of $289,000.
A tax credit of $5.71 million lifted the operating profit to $9.1 million and one-offs of $16.7 million lifted the bottom line further.
PEP said this month that a refloat of Whitcoulls, one of this country's oldest retailers, was one of the most likely options.
PEP partner Simon Pillar said the private equity group would begin seriously looking at its options in 2007.
It would look to divest - most likely via a trade sale or an NZX listing - in the first quarter of 2008.
PEP purchased Whitcoulls, which has 65 stores in this country, from British bookseller WH Smith in 2004.
It paid $135 million to buy both Whitcoulls and Australian chain Angus & Robertson - forming the A&R Whitcoulls group.
PEP this month announced the purchase of Australian newsagency chain Supanews for an undisclosed sum. It will be folded into the A&R Whitcoulls Group. In July, the company said it planned to roll out 45 more stores in the next two years.
It was likely that any listing would be for the entire group, Pillar said.
- NZPA
