Good start by O.P.P.

Press, 9 August 1980, Page 19

Good start by O.P.P.

PA Dunedin Otago Press and Produce, Ltd, has begun the new year well with a 15 per cent increase in turnover on the first quarter a year ago, the chairman (Mr T. C. Fraser) told shareholders at the first annual meeting after the merger last year of Allied Press, publisher of the “Otago Daily Times,” and Lovell Reilly. Mr Fraser referred particularly to the growth of I Lovell Reilly, the produce part of the company, which is going ahead despite a market restricted by population trends. He made particular mention of an import fruit quota won by the Alexandra branch, and said that . it should enhance the position of the company. Mr Fraser remarked on how well the year’s results turned out considering the unsettling effect on staff of both the merger and the decision to close the “Evening Star.” The managing director (Mr J. C. S. Smith) said that the company will be among the last in New Zealand to make the change to elec-

i.tronic newspaper production., J A decision to replace con-1 riventional mechanical equip-’ •iment has been made and the j exact type would probably : > be chosen within a month. ) The company is fortunate: : in having both the “Otago; i Daily Times” and “Evening" 1 I i Star” presses on which to j : ’ experiment. Both were; 1! installed about 15 years ago! and thanks to their short! (daily runs have many years : l of life in them. I J The ideal press to go with! i i electronic newspaper produclition is an offset but since, ■they cost $2-$3 million manyi j companies are adapting their ■;letterpress machines, accord-! . i ing to Mr Smith. . j ii With two presses to aid qthe transition the “Otago: iiDaily Times” will not have: |to go from one system to I i the other overnight without j ; problems being ironed out. ; A shareholder asked how f the new equipment was 3 going to be financed since - shareholders funds decreased. $1 million and there was a r new bank term loan of | t $487,000. j ; Mr Smith said the board ) was mindful of the balance! - sheet position but corrected)

. the impression that con- • I version is going to cost I $700,000. That figure ini’eludes moving the press and making building alterations, he said. I The main system will cost (about $500,000. Financing: "’ for that is being discussed ■with the bankers but the ■company is not prepared to intake a statement yet. i ! Mr Paul LePetit, repre-' . senting the Journalists’! ! Union branch shareholding lin O.P.P. pointed out that . shareholders have been paid . nearly $2 million as part of i the Allied Press merger with Lovell Reilly. If that money from Allied

(Press reserves had been used to buy new technology earli ier there would not have :been any need to avert marauding take-over by mergl ing with friendly interests. Mr Smith said he did not agree with the comment. Last year’s take-over activities by H. W. Smith Ltd, Mount Cook Group and I the Fraser interests (Lovell I Reilly) were historical facts, ■ he said. “It depended on whether i anyone had been willing to Intake an offer.”