Tolley turns around

Press, 9 May 1980, Page 14

Tolley turns around

PA Wellington Confidence that the first half of the current year would show a significant recovery was expressed by the chairman of Tolley Holdings Ltd, Mr F. L. Parkin at the annual meeting in Wellington. The first quarter had already done 'hat, he said. “The improvement occurred later than we had be-i lieved, but the important thing is that it has occurred,” he said. “Two major factors, namely increased volume and reductions in expenses, have played their part in what is a significant turnaround. This is a great credit to the management of the group,” Mr Parkin said.

As already reported, in the year ended November 30, the group made a net loss of $211,000 after a net profit of $841,000 in the 1978 year. No dividend is being paid.

Mr Parkin told shareholders that the board was currently discussing the strengthening of the group’s financial basis with Canada Wire and Cable Co. (This group holds about 45 per cent of the Tolley capital.) The president of the Canadian company (Mr A. N. Fenn) was present at the meeting. He is also on the |Tolley board.

Mr Parkin said that further information will be given to shareholders when arrangements are sufficiently advanced for that to be done. “We are most grateful to Canada for the con-

fidence their continued support implies,” he said. “For the future, it would be naive not. to recognise that there will be difficulties. Inflation is a. serious problem for everyone. We have to deal with a marked increase in all costs, including a sudden rise in the price of copper and other raw materials. The cost of money shows no sign of reducing. New Zealand’s shortterm economic outlook, from which we cannot hope to be divorced, abounds with problems.”