Cashed up Sydney based distributor Shiro, who recently exited the appliance market after Harvey Norman dropped their Omega brand is set to distribute “a significant amount surplus cash to shareholders”.
The Omega business has since acquired by Melbourne based Residentia, Shrio management claimed that their appliance business was “not profitable”.
Earlier this week Shriro management issued a statement to the ASX, claiming that since listing, the business has paid down debt and distributed regular franked dividends to shareholders, and that they are now assessing the future for the business, that last year also lost the rights to Blanco the European appliance Company who has decided to set up their own subsidiary in Australia.
During the past year Shriro stock has fallen 29%. As of December, the business had revenues of $84.4M down 11.7% from $95.6M in the prior half. Profits fell 23.2% from $8.2M to $6.3M.
Shriro management claim that Shriro is investigating new brands for distribution and accretive acquisitions to drive growth, one of their main revenues generating brands is Casio. ChannelNews understands that during the past six months US sales of the Companies popular Everdure barbecues have fallen due to inflation concerns.
Shriro was recently selected by LIXIL Corporation to distribute the American Standard and Grohe brands , in the New Zealand and Pacific Island markets for an initial three-year term, effective 1 July 2023.
The next Shriro Board is scheduled for August 2023 when directors will reveal the purchase price for the sale of the Omega brand of appliances.
They will also decide how to distribute their surplus cash.
Picture above shows Shriro CEO Tim Hargreaves
