Briscoe Group has lifted first-half profit 11 percent and revealed its hostile takeover bid for Kathmandu Holdings has picked up just 2.3 percent of the 80.1 percent of Kathmandu shares it didn't already own.
Briscoe's tax-paid profit rose to $20.5 million in the six months ended July 26, up from $18.5M a year earlier, and in line with July's forecast of at least $20M, the Auckland-based company said in a statement today.
Sales increased 5.4 percent to $244M, compared to the first half of the previous financial year.
In the six-month period, Briscoe reported its homeware earnings before interest and tax increased 11 percent to $17.6M, while sales advanced three percent to $158M.
Its sporting goods unit lifted earnings 29 percent to $10.7M, while sales climbed 10 percent to $86M.
Briscoe is offering Kathmandu shareholders five Briscoe shares for every nine Kathmandu shares as well as 20 cents per share.
Kathmandu's board has rejected the offer and so far acceptances representing just 2.3 percent of the register, have taken up the offer to date.
An announcement to the NZX today puts Briscoe's shareholding in Kathmandu at 22.2 percent.
Briscoe managing director Rod Duke has reiterated he won't be upping the offer, which closes on Thursday.
"We are obviously disappointed in the low acceptance level in response to our offer," Mr Duke said.
"This suggests to us that Kathmandu shareholders are expecting the company to reverse the negative trends in its operating and financial performance of recent years, and to deliver greater value increases than they would obtain from a merger of the two companies...
"We see little chance of a turnaround sufficient for the directors' published forecast of a $30M profit after tax for their 2015-16 financial year [ie a 50 percent increase] to be achieved."