Optical expects better year

Press, 22 May 1978, Page 21

Optical expects better year

Optical Holdings, Ltd, ex-' pects to reverse the 32 per cent downturn in its export, [sales in the year to Decern-1 i ber 31, says the chairman (Mr J. G. Tuck) in the annual report. New overseas markets, including Britain, Canada and the west coast of the United States, coupled with a recovery in the Australian market, should result in sales returning to the 1976 level of $350,000, he says. Domestic sales in the year under review rose 16 per cent higher at $3.4M. But increases in selling and administration costs reduced pro- : fitability. The Australian subsidiaries should make a worthwhile contribution to profit in the current-year, Mr Tuck I, says. The total shareholding of) Optical Manufacturers Com-' [pany Proprietary, Ltd/ io f Sydney, wasp i acquired for cash, and the! other wholly-owned subsidia-[: ry, Tasman Optical Corn-! pany, Ltd, traded at only 66!

! per cent of its expected 'level. Australian business result- [ !ed in a net loss of! >5NZ26,185, compared with a profit of $38,000 from Tasman Optical in 1976. As announced, group net; profit fell 26.8 per cent to, $206,109. The profit was after pro-; viding $83,767 less for tax, at $38,559, reflecting a stock allowance of $69,104, and export and investment allowances of $95,711. Shareholders’ funds rose $450,952 to $1,419,279, mainly because of the specified preference share issue. Ordinary capital was steady at $761,000. The earning rate on the capital fell from 37.1 per cent to 26.6 per cent, and on average funds from 32.1 per cent to 20.2 per 'cent. j The recommended ordi-, nary dividend of 6.25 c a [share (12.5 per cent) takes| [595,125, and is covered 2.2; ; times by the profit. ! Working capital rose ($436,299 to $1,284,369. and. I the current ratio increased [from 1.7 to 2.0 to one.