Franchise Deal ‘Will Improve Share Value’

Stuff

Structured residential property group Blue Chip Financial Solutions is to put all its New Zealand operations in the hands of a franchise group.

The company, which was founded in New Zealand by Mark Bryers, but is now listed on the ASX, said yesterday the franchise deal would result in a “significant improvement in shareholder value”.

Blue Chip lost $2.57 million in the half-year to June and has been reducing its staff numbers in New Zealand in the past year, from about 100 to less than half that number. Its chief financial officer departed recently. The share price slumped from A$1.75 at the start of July to just A47c last week, when the shares were put in a trading halt pending yesterday’s announcement. The price rose to A49c after the announcement.

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