COMMERCIAL M. O'Brien recovery is continuing

Press, Volume CXI, Issue 32565, 26 March 1971, Page 18

COMMERCIAL M. O'Brien recovery is continuing

The recovery of M. O’Brien and Company, Ltd, from the difficulties which resulted in the 1968 loss of $13,785 is continuing: the audited profit for the six months to December 31 exceeded the budget, the directors announced yesterday.

The directors said that because of the present production levels they expected to maintain profitability, in spite of increasing costs and stabilised selling prices. The company released the following message to the stock exchange: “The directors of M. O’Brien and Company, Ltd (receiver - manager appointed), footwear manufacturer, Christchurch, announce that trading for the six months to December 31, resulted in an audited profit exceeding that which was budgeted.

“The result was a continuation of the progress achieved during the previous 12 months, and is a reflection of improved recoveries and managerial controls. The causes of the problems which beset the company in 1967 and 1968 have largely been eliminated and full recovery

from these problems is in sight. “The directors recently announced a progress payment of 50 per cent of amounts owing to prei receiver creditors. In the meantime, the company remains in receivership pending a satisfactory arrangement for the payment of the balance outstanding.” In a letter to shareholders the directors said that they believed that strength had been derived from overcoming the company’s problems, and that the company

i was now better equipped to [regain its former position as one of the industry’s leaders, i All the conditions of the bank for the withdrawal of the receiver-manager (Mr Hugh Beattie) had been met for some time, they said, except for payment of prereceiver creditors’ accounts. As announced, half of these accounts would be settled in April." Efforts are being made to arrange payment of the balance, and this should be achieved within the not too distant future, the directors said.