K&D board to be downsized as the company elects not to replace director

HARDWARE retailer Kemp and Denning Limited will shrink its board by one director when the 94th annual general meeting of the company is held next week.

Kemp and Denning says its city properties are “poised to meet the challenges ahead”. Picture: MATHEW FARRELL

HARDWARE retailer Kemp and Denning Limited will shrink its board by one director when the 94th annual general meeting of the company is held next week.

A notice of meeting for September 28 says: “Mr JA (John) Simon has resigned effective 28 September and directors have elected not to replace him.”

The reduction of the board to four directors comes at a time when company chairman Greg Goodman has said in the annual report that the company “has a clear strategy to get more value out of its real estate holdings”.

“With the well-established positioning of our CBD sites (103 Melville St) K&D is poised to meet the challenges ahead.

“To maximise our impact we will increasingly look for opportunities to maximise the benefit of these properties.”

The company has been under siege from the expansion of Bunnings, and recorded a $9.8 million loss in the year to May 31, 2017.

It has closed operations at Glenorchy, Devonport, Kingston and Cambridge and sold its trade business to Clennett’s Mitre 10 for $4.6 million.

MORE: K&D FORCED TO TIGHTEN ITS BELT AFTER $9.8 MILLION LOSS

MORE: CLENNETT’S MITRE 10 BUYS KEMP & DENNING TRADE STORES

Shareholders will be asked to vote on the future of two directors, Susan Allison-Rogers and Robert Rex, who filled a casual vacancy in October last year.

The company has also called for expressions of interest on land and buildings at Kingston.

These are valued at $3.1 million.

Shareholders in the unlisted public company will receive a dividend of twenty cents a share at a cost of $536,727.

The company’s 2.683 million shares have been trading at $3 a share — valuing the company at $8 million.