Stock takes: Briscoe on a roll

Photo / APN

Opinion

Briscoe Group continues to defy the gloom surrounding the retail sector.

The homeware and sporting goods retailer posted a 4.7 per cent gain in fourth-quarter sales and said a strong finish to the year drove annual profit up at least 25 per cent.

Sales in the 13 weeks ended January 29 rose to $146 million from $139.4 million in the fourth quarter a year earlier, Briscoe said.

Sales at stores open at least 12 months rose 9.1 per cent.

Fourth-quarter revenue lifted annual sales by 4.5 per cent to $438 million, resulting in full-year profit of at least $27 million, from $21.6 million a year earlier.

Rod Duke, managing director and major shareholder, said the market responded "very favourably" to marketing during the lead up to, and throughout the crucial Christmas period.

Briscoe expects to post its annual results on March 9. Shares closed up 8c at $1.50 yesterday.

HERSHEY SHARES SPACE

Medical testing biotech company Pacific Edge is setting up its United States commercial laboratory and headquarters thanks to chocolate giant Hershey and the state of Pennsylvania.

The company's diagnostic bladder cancer test lab will be in Pennsylvania, within the Hershey Centre for Applied Research, a university and technology research facility.

Pacific Edge, which has spent more than $15.7 million on research and development on cancer diagnostics during the past decade, recapitalised itself and raised $20.1 million last year, the latter to commercialise its bladder cancer test.

Pacific Edge is to receive more than US$2.3 million ($2.79 million) in grants and incentives from the state of Pennsylvania's business division, the Economic Development Administration of the Department of Commerce, to build and fit out its lab in the centre.

BAYWA BUY EXTENDED

The takeover play by BayWa Aktiengesellschaft of Turners & Growers looks likely to be extended again with the German international trading and services company waiting for approval from the Overseas Investment Office.

The current closing date is next Wednesday and BayWa has said it will declare its offer unconditional on the first day after consent is received.

Guinness Peat Group has entered into a pre-bid agreement to sell its 63.5 per cent stake to BayWa, which is offering $1.85 each for all shares - valuing Turners & Growers at $216.5 million - conditional on getting more than half the voting rights.

Shares in Turners & Growers, which has operations including growing apples, tomatoes and citrus, closed at $1.77 yesterday, having closed at $1.69 on the day the takeover offer was announced.

The most recent notice to the stock market showed BayWa had reached 68.36 per cent of shares.

SPEEDING TICKET

Rakon stocks stood their ground this week after the oscillating-crystal maker was queried by the NZX over a surge in its share price.

During the period 4 January to 27 January, Rakon's share price increased from $0.47 to $0.67 - a jump of 42.5 per cent.

Following the surge the stock exchange issued Rakon a please explain notice, colloquially known in some circles as a "speeding ticket". Rakon responded on Tuesday that it had complied with the exchange's rules, but gave no details on why its shares had jumped.

Although its shares dipped down to 60c on Wednesday they were back up yesterday, closing at 63c.

Rakon's crystal are used in smartphones, GPS devices and telecommunications networks.