The Reject Shop Ltd (ASX:TRS) has revealed that it expects net profit after tax (NPAT) for the December half to be around $10.5 million.
This estimate is based on unaudited results and is in line with the guidance provided in October 2018 of December half NPAT to be in the range of $10.0 to $11.0 million.
The company will release its formal audited December half results on 20 February 2019.
The Reject Shop recommends shareholders reject takeover offer
The Reject Shop’s chairman Bill Stevens said: “Consistent with the guidance provided in the trading update issued by The Reject Shop on 17 October 2018; and re-affirmed in the company’s target’s statement dated 3 December 2018 in response to the on-market takeover offer by Allensford Pty Ltd as trustee for the Allensford Unit Trust.
“Notwithstanding the ongoing challenges of a very competitive retail environment, our team members responded in presenting a November and December store offering that was well supported by our customers.”
On 21 November 2018, Allensford Pty Ltd made an unconditional on-market takeover cash offer for The Reject Shop of $2.70 per share.
Allensford went on to say that it would stand in the market and buy shares at the offer price of $2.70 for a defined period of time.
Company says trading update shows that offer is opportunistic
Stevens added: “Today’s announcement is issued in the context of the takeover offer from Allensford, which is currently due to close on 22 January 2019.
“Allensford’s replacement bidder’s statement dated 3 December 2018, together with its second supplementary bidder’s statement dated 20 December 2018, contained a number of speculative comments in respect of The Reject Shop’s trading performance over the first half of FY2019 that have been shown to be unfounded.
“Amid a backdrop of highs and lows over the past few years, your Board continues to believe in the long-term growth prospects of The Reject Shop’s business, which has remained profitable despite the extremely challenging and fluctuating retail environment.”
Allensford extends offer period after trading update
Yesterday, after-market and following the trading update, Allensford extended the aforementioned offer period to 6 February 2019.