Davy, Goodbody chosen to deal in Reox shares

TWO of the country’s leading brokers, Davy Stockbroker and Goodbody Stockbrokers have been appointed to deal in Reox Holding’s shares, due to start trading on the grey market next month.

Dairygold boss Jerry Henchy said the shares are currently worth €2 per share based on the net worth of Reox of €190 million after deduction of debt. Reox is the non-core subsidiary of Dairygold Co-op and included its 4Homes consumer division and its property operations trading under Alchemy Properties, and currently planning three town centre developments worth an estimated €150m to the group.

Commenting after the publication of results for the group for 2005, Mr Henchy said the main concern was that enough shares will be traded to make a meaningful market, so that farmers can realise value if they wish to at any time in the future. He expressed satisfaction with last year’s results, but said the real test for the group starts now following the serious cost cutting and the transformation of the co-op into two separate entities.

“The basic hard work in getting the society into a manageable shape has been delivered, but we have yet to do something clever” was his summary of where the group presently stands.

Mr Henchy said several challenges lie ahead for the group.

He would like to see 4Homes developing quicker than it has. But he rejected suggestions the division was under-performing, or that the loss of its chief executive recently was in anyway connected to the slower-than-hoped-for roll out of new stores. This is a process and so far five of the superstores are up and running and several more are moving closer to launch, he said.

Stores at Ashbourne, Midleton, Bandon and Ballincollig are at various stages of development and will be coming on stream over time, he said.

The “new format” was proving itself with sales up by 27% last year, as consumers respond to the new DIY/Homeware concept, he said.