Brumby's Has Dough To Grow
The Age
Wednesday November 15, 2006
BAKERY franchise operator Brumby's is chasing acquisitions in the food retail industry in a bid to boost earnings ahead of a possible float on the Australian Stock Exchange.
Brumby's managing director Michael Sherlock said yesterday said that the group had already identified acquisition targets, which he said would not be limited to the bakery sector."We see ourselves not as a bakery company but as specialist franchise retailers. So the areas that we will be looking in will include food retail franchising," Mr Sherlock said, ahead of the annual meeting in Brisbane.The acquisition plans come as Brumby's is close to clearing debt from its balance sheet.By December it aims to have paid off a loan it used to buy back a 23 per cent stake in the company previously held by listed food supplier Goodman Fielder.Mr Sherlock said that he was aiming towards a listing. However, earnings would need to improve.In September, the company reported that profit had jumped 21 per cent to $2 million for the year to June 30 on revenue that also increased 19 per cent to almost $10 million.The company expects to open new stores in the Middle East this year, after signing a master franchise agreement with the IIC Group.Brumby's has been listed on the junior sharemarket, The Bendigo Stock Exchange since 2003. Its price has more than tripled to $1.80.
© 2006 The Age
