The February back-door listed Chow Group has released preliminary results to the end of March, showing an $8.2 million profit before tax.
Majority shareholders and NBR Rich Listers John and Michael Chow did a reverse takeover of NZX alternative board-listed RIS Group [NZAX: RIS] in February.
The brothers transferred their 135-room Otahuhu-based Park Ave Residence complex into RIS.
The accounts prepared using reverse acquisition accounting show an $8,350,314 change in fair value of the investment property. The accounts don’t explain how this figure was arrived at.
The group’s total assets now stand at $18.6 million.
Net profit for the period of the unaudited accounts was $8 million and earnings per share were 6.03c. A loss on acquisition of $403,016 and takeover costs of $495,200 were written off.
The group says the balance date for its accounts has been changed from June 30 to March 31, bringing the parent company into line with the trading subsidiary 16 Park Avenue Ltd.
Company chairman John Chow says a maiden profit of $8.051 million is a tremendous start for the company. “We are proud of what we have achieved and we are working hard to find a way to further increase shareholder value.”
Mr Chow says the group is working on further opportunities and will announce these as soon as it is able to.
At the time of listing, the brothers said it was the first step in moving most of their private $200 million property portfolio into the vehicle. “Our objective is to have a very successful public company,” John Chow said.
Chow Group’s shares last traded at 4.9c each, up 172% from the opening price of 1.8c a share.
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