Fernando MonteiroMyer is Listing in the ASX
September 13th 2009 11:54
Last Friday Jennifer Hawkins, Miss Universe 2004 and Myer’s face, and Bernie Brookes CEO joined forces to promote the new listing of Myer in the Australian stock exchange. Myer came off a period of three years of delisting and turnaround, the question to be asked being: will it now be the big bet everybody wants it to be?
Myer opened for trading in 1899 in Bendigo offering attractive merchandise and competitive prices to serve the well off as well as the common shopper. In 1911 The Myer Emporium in Melbourne opened for trade. Women loved Myer it for its product and for its marketing and promotions. The man behind it was Sidney Myer, a Russian migrant and a man reputed not only for his at the time futuristic business practices, but also for his many charitable activities.
In 2006 Myer, not performing well after an association with Coles, was bought out for $1.4 billion by Texas Pacific Group (TPG) and Blum Capital, both private equity interests that took 84.2 per cent of it, the Myer family who took 8.3 per cent and management 7.5 per cent. The company was then delisted from the Australian Securities Exchange (ASX) and trades privately. The man at the helm has been Bernie Brookes MD and Jennifer Hawkins its public face.
Results released on Friday for the full year 2009 reveal that while sales fell 1.8 per cent to $3,261 million, net profit after tax increased by 14.8 per cent to $109 million. Return on equity was 32.1 per cent. No profit guidance was given, except that Myer expects a 3 per cent sales growth and 10 per cent EBIT growth for full year 2010.
The fact is that Brookes has been cutting costs a lot, from where the increase in net profit, being the question now to be asked wether that is sustainable into the foreseeable future. Moreover, it’s now being discussed between investors wether TPG should keep a stake in the listed Myer, something that would be seen as a warranty that the cost containment within Myer is sustainable.
Myer has at this stage debt of $694 million, not a small amount by any means, being its gearing 65 per cent. Upon floating that debt should be reduced to $450 million.
The Myer concept is based on selling high quality merchandise for a not too high price and achieved a sales margin of 7.23 cents in the dollar. David Jones makes an higher sales margin at around 10 cents in the dollar. Bellow Myer are the discount stores such as BigW with smaller margins.
Applications for the share offer will be accepted between 6 and 11 of October. Trading in the ASX will start in the beginning of November.
Myer opened for trading in 1899 in Bendigo offering attractive merchandise and competitive prices to serve the well off as well as the common shopper. In 1911 The Myer Emporium in Melbourne opened for trade. Women loved Myer it for its product and for its marketing and promotions. The man behind it was Sidney Myer, a Russian migrant and a man reputed not only for his at the time futuristic business practices, but also for his many charitable activities.
In 2006 Myer, not performing well after an association with Coles, was bought out for $1.4 billion by Texas Pacific Group (TPG) and Blum Capital, both private equity interests that took 84.2 per cent of it, the Myer family who took 8.3 per cent and management 7.5 per cent. The company was then delisted from the Australian Securities Exchange (ASX) and trades privately. The man at the helm has been Bernie Brookes MD and Jennifer Hawkins its public face.
Results released on Friday for the full year 2009 reveal that while sales fell 1.8 per cent to $3,261 million, net profit after tax increased by 14.8 per cent to $109 million. Return on equity was 32.1 per cent. No profit guidance was given, except that Myer expects a 3 per cent sales growth and 10 per cent EBIT growth for full year 2010.
The fact is that Brookes has been cutting costs a lot, from where the increase in net profit, being the question now to be asked wether that is sustainable into the foreseeable future. Moreover, it’s now being discussed between investors wether TPG should keep a stake in the listed Myer, something that would be seen as a warranty that the cost containment within Myer is sustainable.
Myer has at this stage debt of $694 million, not a small amount by any means, being its gearing 65 per cent. Upon floating that debt should be reduced to $450 million.
The Myer concept is based on selling high quality merchandise for a not too high price and achieved a sales margin of 7.23 cents in the dollar. David Jones makes an higher sales margin at around 10 cents in the dollar. Bellow Myer are the discount stores such as BigW with smaller margins.
Applications for the share offer will be accepted between 6 and 11 of October. Trading in the ASX will start in the beginning of November.
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