The Hub business services

New Zealand's first comprehensive procurement provider to small and medium businesses, SMEs.

Tuesday, November 13th 2001, 12:45PM

Invest now for 13% projected net earnings in Year 2*

A new company offering corporate buying power to small businesses is providing an opportunity to invest in the Hub through a public offering of shares.

Two million shares are being offered at $1 each. Investors may apply for a minimum of 500 shares and thereafter in multiples of 100 shares. The offer closes on 7 December 2001.

Projected net earnings per share for the years ending 31 March 2003 and 2004 are 13.64% and 70.8% per share respectively*.

The Hub has completed fuel and tyre supply agreements with Caltex and Beaurepaires. The Hub supplies telecommunications services (network services provided by CLEAR Communications Limited), and has secured bulk electricity supply through broker, Group Energy Purchase Ltd. Other supply agreements cover stationery (Wickliffe), computer services (ComputerLand), travel (Atlantic and Pacific), vehicle rental (Budget Rent a Car). More are planned.

The agreements give Hub customers access to substantial savings and a single monthly invoice for all of the different products and services purchased through the Hub.

This is a rare chance to invest at ground level in a company that is giving New Zealand businesses more bite.

For a Prospectus and investment statement, freephone 0508 509 510 or visit www.hub.co.nz.

Applications to invest may only be made on the Application form contained in the Prospectus and investment statement.

Summarised Financial Projections
	Projections Year Ended 31.03.02	Projections Year Ended 31.03.03	Projections Year Ended 31.03.04
	$	$	$

Number of customers	485	6,001	10,501
Market share (% of total potential customers)	0.23%	2.86%	5%

Gross service supply revenue	640,096	22,889,572	67,814,155
Gross service supply revenue per customer	1,320	3,814	6,458

Gross margin	77,797	2,577,252	7,112,320

Expenses	1,237,765	2,069,235	3,308,830
Taxation	-	-	1,133,909
Net Surplus after tax	(1,138,562)	524,976	2,725,762
Dividend	-	-	1,090,000

Earnings per share (cents per share)*	(29.57)	13.64	70.80

Net assets	910,653	1,435,629	3,071,391

Net assets per share (cents per share)*	23.65	37.29	79.78

*Net earnings per share calculated as projected net profit after tax divided by 3,850,000 shares. Percentage net earnings per share calculated by reference to investors $1 per share invested. Net earnings per share is not a projected distribution to shareholders. Gross distributions to shareholders are projected to be zero for year ending 31 March 2003 and 41.5 cents per share for year ending 31 March 2004. Gross Distributions include cash and imputation credits. All projections are based on the assumptions contained in the Prospectus and Investment Statement for the offer dated 31 October 2001. Nothing contained in this advertisement constitutes a promise that the investment in the shares will be profitable.