M. O’Brien sales on increase

Press, 25 October 1978, Page 24

M. O’Brien sales on increase

M. O’Brien and Company, Ltd, survived a severe national downturn in trading in 1977-78 without reducing its working week or making a major reduction in staff, the chairman (Mr G. W, Hunt) says in the annual report. When the company re-i leased its preliminary annual! statement the directors said! present trading was showing a marked increase. As reported, the company ; in the year to June 30 suffered a 19.8 per cent decline in tax-paid profit to $96,446. Mr Hunt says that while annual sales value rose by 2.3 per cent, shoe numbers sold were 17 per cent down from the previous year.

Investment in' finished j goods continued to rise be-! cause of high production! 1 costs, up an average 18 per cent over 1976-77, and there now is every indication this trend will continue for some time. A need to carry more stocks arose from new patterns of seasonal purchasing, plus the higher value and inflated price of finished goods and materials, required increased working capital beyond earned retentions from trading surplus. During the year the demand i for further financing resulted in a 17 per cent rise in, l 'interest charges. i On manufacturing. Mr Hunt says over-all produc-i [tion fell 17 per cent. Work! boots were down 44 but I road shoes up 200 per cent,) indicating a sharp consumer! drift towards that type of! footwear. During the year the direct! nylon injection moulding for! football soles to the Adidas!

range was commissioned, re-1 ducing dependence on im-j ported soles. Mainly through an initial I order for 1200 pairs of com-i bat boots for the Fijian Military Forces, export sales in- 1 creased fourfold. The com-i pany was maintaining active | interest in fostering exports. I He says; "With business! profits tumbling, and politi-j cians without the will to 1 tackle resolutely the burgeoning cost of social and; government services and! wage orders, the future looks a little grim." However, he adds, promotions and developments last! year already have given I O’Brien a good start to 1978-79. which show every; sign of improvement.