The following report from the excellent The Business Herald which is included with the New Zealand Herald each Friday.

Unsuccessful Borders raid costs Whitcoulls $5.2m
Friday May 02, 2008

Whitcoulls' focus is on new store formats and its net platform.

Photo / Chris Skelton

First half net profit for transtasman book and stationery retailer A&R Whitcoulls Group was hit by spending of A$4.3 million ($5.2 million) on an unsuccessful bid for the Australian and New Zealand assets of Borders.

The company yesterday reported half-year net profit after tax of A$6.5 million. It said the underlying net profit was 3.7 per cent higher than the corresponding period a year earlier at A$9.5 million.
The Borders costs related principally to due diligence and legal fees. Negotiations between the two parties ceased in March and so the costs had been expensed, the company said.
Revenue for the half year was A$226.2 million.
A&R Whitcoulls is owned by private equity fund Pacific Equity Partners, and operates Angus & Robertson book retailers and the Supanews joint venture news agencies in Australia, and the Whitcoulls chain in this country.

A&R Whitcoulls managing director Ian Draper said the half-year result was in line with expectations.
"The market for book retailing in the first half of the year has been challenging in terms of sales growth," he said. "In both Australia and New Zealand consumer confidence is down due to economic conditions and the impact of higher interest rates."
The business remained committed to its strategy of developing and rolling out new store formats and investing in its web platform.