A recent analysis of Hallenstein Glasson Holdings noted the lack of institutional investors and the overwhelming 74.4% proportion held by retail investors. The analysis calculated “insiders” owned 24.2% – in this case mainly chairman Tim Glasson.
While this structure gives retail investors the potential for a greater say over major policy decisions, it also means the company’s fortunes are closely aligned with those of the insiders. An important indicator is buying patterns and these show insider trading over the past nine to12 months is heavily in favour of buying.
In the past year, the shares have risen from about $3 to a peak of $5 on a solid performance performance by its two main clothing chains, Hallenstein Brothers (men’s wear) and Glassons (women’s), in New Zealand and Australia. The high fashion store brand Storm has been dropped, though one outlet continues under a management buyout.
Turnover in the six months to February rose 19.4% to $146.8m, with net profit up 64% to $15.1m. At $4.86, the shares value the company at $290m, boosting Glasson’s stake to about $58m.
Although solidly invested in bricks and mortar stores, the company’s e-commerce activity has increased to 11% of turnover through digital and social media marketing.
Glasson owns a substantial property portfolio, including the $80m ANZ Centre built on the old Triangle Centre site in downtown Christchurch. It has ANZ and Beca as anchor tenants, while also having Hallenstein Brothers and Glasson stores. In nearby Hereford St, Glasson owns a 580-bay carpark that cost $30m.