The Directors of Smiths City Group Limited are very pleased to advise final settlement of all insurance matters following the 2011 Christchurch earthquake.Payment has been received today of $5.6million (net of GST) in respect of the damaged Colombo Street, Christchurch, buildings. This brings the total of payments received for the site to $18million of which $7.2million has been spent on returning the retail operation to pre-earthquake condition. The balance of $10.8million related to the non-retail head office and rental buildings. All other insurance claims in respect of stock and business interruption were settled during 2011 and 2012.Chairman Craig Boyce said “As a result of this final payment we can expect an extraordinary profit of about $8.5million (pre tax) in the current year ending to 30th April 2015. Of this $2.875million was received and recorded in the first half accounts. Our head office is currently located in rented premises at Watts Road, Christchurch, and will remain there with these insurance funds directed to reduction in borrowings.”In an update on trading, Craig Boyce said “Retail trading conditions have softened since the beginning of 2015 following a strong Christmas period. This reduced demand, particularly in the rural and provincial areas, coincides with the spring and summer drought on the east coast and significant reduction in farm revenues from lower dairy and land prices. For the final quarter ending today our retail sales will be in line with last year as they were for the first nine months. However, as a result of cost and margin pressures operating profits will be down over the second half. This, however, will be compensated by the gains outlined above on insurance.”CRAIG BOYCECHAIRMAN
