Could we begin with a profile of Kleeneze Group?
That is the Kleeneze Group – three separate retailing businesses with no overlap but common synergies. TWST: Which of the three businesses prove most profitable? MR. HULLAND: Historically Farepak has been highly profitable due to its low levels of working capital as working capital is provided by customers as they pay in advance of our purchase of raw materials. Kleeneze is also profitable, as its mark up is substantial. We think that Kleeneze’s expansion has a long way to go, as its market penetration is not significant. Our new business, DMG, has required a big investment in working capital as distributors hold large stocks in order to place samples at workplaces. On average a distributor holds between six and eight weeks worth of sales in stock at any one time and this is an issue that we will change over the next 12 to 18 months. Once the stockholding has reduced DMG will generate significant returns. Tickers included in this excerpt: KLZ.L For more information call (212) 952 7433.