Sherlock’s reign sees share price jump

Sherlock’s reign sees share price jump from $0.55 to $3.40 in 3 ½ years

Brumby’s Managing Director Michael Sherlock said today he was extremely proud that his business strategy had seen the leading Australia and New Zealand bakery franchise’s share price rise from $0.55 to an offer of $3.40 in 3 ½ years.

Mr Sherlock announced he was stepping down as managing director and leaving Brumby’s after BBS – a syndicate made up of Sherlock, BBH director Marcus Barlow and general manager and company secretary Steve Brown – agreed to support the Retail Food Group’s (RFG) $3.40 bid for BBH.

Mr Sherlock said BBS’s decision was made after RFG announced on Friday May 4 that it will make a cash offer of $3.40 per share for BBH and had already secured 15.59 per cent of Brumby’s stock previously held by River Capital.

“River Capital selling its shares to RFG meant it was extremely unlikely that BBS could secure 100 per cent ownership of BBH,” he said.

“BBS decided not to proceed further with its takeover bid which had offered an aggregate value per share of $3.30.”

Mr Sherlock said RFG offering $3.40 per share for Brumby’s confirmed the successful efforts of the management team that has led Brumby’s in recent years.

“When I took over as managing director seven years ago, Brumby’s performance was suffering from board infighting and poor management,” he said.

“Since then Brumby’s has produced record results, grown to more than 320 stores across Australia and New Zealand, launched its Brumby’s Go stores, expanded into supermarkets and airports and initiated steps to establish Master Franchisees in other countries including the Middle East.”

“The price of $3.40 is more than six times what Brumby’s was valued at when it listed on the Bendigo Stock Exchange (BSX) 3 ½ years ago at $0.55 per share.”

Mr Sherlock said he was now looking forward to new business challenges in the retail sector.

“It has been an exciting, satisfying and successful journey with Brumby’s. I’m now looking to use that knowledge and experience in a new environment.”

ENDS

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