French boss drops in as Rip Curl profit soars

THE CO-FOUNDER of Rip Curl's European arm has increased his stake in the company, joining founders Brian Singer and Doug Warbrick as an owner of the key voting shares.

By InvestSMART · 24 Dec 2009

By InvestSMART ·
24 Dec 2009

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THE CO-FOUNDER of Rip Curl's European arm has increased his stake in the company, joining founders Brian Singer and Doug Warbrick as an owner of the key voting shares.

Frederic Basse has upped his holding from just 13,809 A-class shares, acquired in May, to more than 200,000 shares at the end of November.

A-class shares are entitled to receive dividends. The company paid a dividend of $1.12 a share in January and is expected to pay a similar amount next month.

Other senior executives including the financial chief, Rodney Adams, the French boss, Henri Colliard, and the Spanish boss, Raquel Perez, do not own A-class shares.

Details of the transaction were revealed in yesterday's filings to the Australian Securities and Investments Commission by the only privately held company among Australia's big three home-grown surfwear brands.

Mr Basse, a former French national surfing champion, founded Rip Curl's European business in 1983 with Francois Payot.

He lives in the French surfing town of Hossegor as head of product development and is credited with having developed seamless boardshorts. He reports to the European chief executive, Olivier Cantet, who has held the position since July.

Mr Basse also has 4112 E-class shares, which are non-voting.

Meanwhile, listed rival Billabong announced it had bought a minority interest in the Australian online surfwear retailer Surfstitch, which operates from a surf shop on Sydney's northern beaches.

Surfstitch sells all brands, including Rip Curl and Quiksilver, and is owned by Lex Pedersen, who set up the website from his Mona Vale premises in September last year.

Billabong told the Australian Securities Exchange that the purchase price was not material and was confidential.

Rip Curl, with headquarters in Torquay in Victoria, is the third-biggest player in an $8 billion market dominated by Billabong and Quiksilver.

Rip Curl Group sold $443 million worth of surf and snow gear, watches, shoes and accessories in 2008-09 through its wholesale and retail operations in the US, Europe and the Asia-Pacific.

It owns businesses in Thailand, Switzerland, France and Belgium, has a joint venture in Canada and also licenses its product in other countries.

The business generated a net profit of $33.9 million - the previous year's figure was $14.4 million.

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Frequently Asked Questions about this Article…

How many Rip Curl A‑class shares did Frederic Basse buy and why does that matter for investors?

Frederic Basse increased his holding from 13,809 A‑class shares (bought in May) to more than 200,000 A‑class shares by the end of November. That matters because A‑class shares are the key voting shares and are entitled to dividends, so his larger stake strengthens his ownership and influence in Rip Curl.

Do Rip Curl A‑class shares pay dividends and what dividend was recently paid?

Yes. A‑class shares are entitled to receive dividends. Rip Curl paid a dividend of $1.12 per share in January and was expected to pay a similar amount the following month, according to the company filings reported in the article.

Which Rip Curl executives own A‑class shares and which senior managers do not?

The founders (Brian Singer and Doug Warbrick) and Frederic Basse are owners of A‑class shares. Other senior executives named in the article — financial chief Rodney Adams, French head Henri Colliard and Spanish head Raquel Perez — do not own A‑class shares.

What is Frederic Basse’s role at Rip Curl and what’s his background?

Frederic Basse is the co‑founder of Rip Curl’s European business and heads product development from Hossegor, France. A former French national surfing champion, he helped found the European arm in 1983 with Francois Payot and is credited with developing seamless boardshorts. He reports to European CEO Olivier Cantet.

How profitable was Rip Curl in 2008–09 and how does that compare with the prior year?

In 2008–09 Rip Curl Group generated a net profit of $33.9 million, up from $14.4 million in the previous year, reflecting a significant improvement in profitability over that period.

What were Rip Curl’s sales in 2008–09 and where does the company operate internationally?

Rip Curl Group sold $443 million worth of surf and snow gear, watches, shoes and accessories in 2008–09 through wholesale and retail operations across the US, Europe and the Asia‑Pacific. The company owns businesses in Thailand, Switzerland, France and Belgium, has a joint venture in Canada and licenses its products in other countries.

What was Billabong’s recent move involving online retailer Surfstitch and what does Surfstitch sell?

Listed rival Billabong bought a minority interest in Australian online surfwear retailer Surfstitch. Surfstitch sells all major surf brands — including Rip Curl and Quiksilver — and is owned by Lex Pedersen, who launched the website from Mona Vale in September the previous year. Billabong told the ASX the purchase price was not material and was confidential.

How were the Rip Curl share transactions disclosed and where can investors find the details?

The details of Frederic Basse’s share transactions were revealed in filings to the Australian Securities and Investments Commission (ASIC). Investors can consult the relevant ASIC filings and Rip Curl’s public disclosures for formal transaction records.