Optical Holdings doing well

Press, 17 September 1976, Page 16

Optical Holdings doing well

. The recently-listed company, Optical Holdings, Ltd, more than doubled its exports in the six months to June 30. This trend is expected to continue in the second half of the current year, the chairman (Mr J. G. Tuck) says in the interim report. The company has been exporting spectacle frames and sunglasses to Britain, South Africa, Australia, Japan, Canada and Hong Kong since 1967, with dramatically increased sales in the last three years. Total turnover in the halfyear was 23 per cent higher than the same period last year, Mr Tuck says. As forecast in the prospectus for the public float, profit showed a satisfactory increase.

The company opened a new factory in February, and production has steadily increased despite delays in the arrival of new machinery.

At June 30, there was a substantial build-up of manufactured stocks against orders, for delivery from July to December.

Mr Tuck repeats his warning in the prospectus that much of the group’s business is of a seasonal nature as the bulk of sunglasses is sold in the second half of the year.

Because of this, first-half results are not indicative of the results for the full year to December 31. Indications are that the year’s result will show a satisfying increase on that in 1975.

In 1975 profit rose 20 per cent to $226,396, earned at the rate of 28.8 per cent on shareholders’ funds and 31 per cent on capital, giving ample cover for the forecast 12.5 per cent dividend. Apart from manufacturing spectacle frames and sunglasses, the company imports and distributes frames, lenses and other ophthalmic products. It has agencies for clocks, watches and other imported goods. The 50c shares placed with the public recently at 69c joined the stock exchange list last week. After reaching a peak at 96c they are now around 93c.