Con. Plastic Has Written Off Regent Plastic

Press, Volume CX, Issue 32387, 28 August 1970, Page 18

Con. Plastic Has Written Off Regent Plastic

(New Zealand Press Association) AUCKLAND, August 27. The acquisition of Regent Plastics by Consolidated Plastic Industries (N.Z.), Ltd, “was a complete and utter failure,” C.P.l’s deputy chairman (Mr E. D. Wilkinson) said today.

"There will be no more losses, however—capital or otherwise,” he told shareholders at today’s annual meeting. “In the account to March 31, 1970, we have taken into account every conceivable loss.”

Regent Plastics, taken over by C.P.I. in 1968, has incurred losses of more than $900,000 over the last two years.

Explaining Regent’s loss of $645,000 this year, Mr Wilkinson said: “When Regent Plastic’s stock was taken in March, 1968. a heavy loss was found to have been incurred, but it was not until late in

July that we found our true position.

“One of the main reasons we took over Regent was the staggering amount of export orders they had—far more than they could produce. “But because of promotional campaigns running so far ahead of delivery, the market for Regent products, particularly Torro toys, had fallen fiat everywhere. “We do not intend to produce anything more ip the name of Regent unless the prices are acceptable. We will only take business at a profit. So far as we are concerned the whole thing is washed up.” Mr H. T. W. Nolan, the chairman, in his addfess, said that on April 1, 1969. Regent Plastics held, or had delivered in the preceding year, export orders to the value of about $500,090. Exports Run Out “At this time last year,” he said, “we had no reason to believe that export sales would not continue at a high level. However, by November last it was clearly apparent that distributing agents, i both here and overseas, had; over-purchased, were having difficulty in quitting their stocks and the prospects of receiving repeat orders in volume was bleak. Furthermore, the economic conditions prevailing in the United States had closed that door to us and we were unable to meet the fierce competition of selling on their depressed market.” Mr Nolan said that since November, the position, through lack of orders, had further deteriorated and measures were being taken to en-

sure that no further trading losses would be incured. The directors had decided that there was no future in Regent Plastics, he said. Mr Nolan said that the reduction in profit before tax of $262,163 from group operations other than Regent Plastics, was brought about by problems in the manufacturing divisions. Wage and salary increases, general costs and industrial disputes in both New Zealand and Australia were all to blame. Future Prospects Speaking of the prospects, Mr Nolan said that sales for the group for the four months to July 31, were 19 per cent up on the same period last year. “Forward selling indicates that group turnover will remain at a significant level ahead of last year and, providing the current economic and trading conditions are maintained, we expect the profit for the year to March, 1971. to be in line with those of 1968 and 1969.”

I George Court Profit Up 37% The net profit of George i Court and Son, Ltd, the Auckland retailer, increased by 37.2 per cent to $142,369 in the year to July 19, A final dividend of 6 per cent is recommended, making a total of 9 per cent—an in- . crease of 1} per cent on enlarged capital. It will be paid after the ■j annual meeting on October 9; •ex dividend September 25.