Prestige more specialised

Press, 2 October 1979, Page 20

Prestige more specialised

The major restructuring of Prestige-Hoieproof N.Z., Ltd. has cleared the way to specialise, and achieve a greater market share, the managing director (Mr N. F. Tolerton) says in the report on the year to June 30. However, Mr Tolerton forecasts static market conditions for the immediate and foreseeable future, and says the current year will be a testing one. Action on recommendations by the Industries Development Commission for the textile industry is * expected, and the company agrees with the commission that there should be more Government encouragement to process New Zealand woo! to a higher degree before it is exported. The company is equipped to respond immediately to opportunities for further exports of hand-knitting yarn, and there are other possibilities for yarns, and fabrics which it is hoped will receive Government support. The chairman (Mr J. B. Massey-Greene) says that the textiles and clothing industry was badly affected by the

downturn in the New Zealand economy, and restrictions on exports to Australia. However. the groups export sales increased 10.4 per cent to $4,186,385. Total sales rose 6.2 per cent to $32.2M. Future exports will be mainly hand-knitting yarns and knitted garments from the Jacquard mills. Prestige-Holeproof is investigating the feasibility of closing its hosiery knitting plant, and buying in the knitted fabric from another manufacturer, but Mr Tolerton says: “At this stage, finality has not been reached.” The groups profit in the year to June 30 was down 53.3 per cent at $893,314. A net extraordinary loss of $589,009 (last year $1230) was incurred on the closure and sale of divisions, surrender of life policies and in goodwill written-off. The dividend is being held at 15 per cent (7.5 c a share). The earning rate on average shareholders’ funds fell to 5.2 per cent from 11.4 per cent. Shareholders’ funds at June 30 were $523,855 lower at $15,855,982. Term liabilities were down $904,031 at 52.221.582.