Export progress for Ernest Adams

Press, 15 August 1980, Page 7

Export progress for Ernest Adams

Ernest .Adams, Ltd, continues to make progress in export markets, but this has not been without its problems, the chairman (Mr H. A. Adams) told shareholders at the annual meeting yesterday. There were many problems associated with exporting, one being the necessity to comply with the labelling regulations which varied so greatly from country to country, he said. “Shipping has also been a problem. Ernest Adams had to ask one Middle East customer to wait three months before the company could even ship his firm order.” Mr Adams said, he and the sales manager, Mr L. D. G. Beardsley, had recently met buyers in Sydney and Brisbane, and that the company’s products were well received.

“However, the effects of several years of high in-

flation in New Zealand, added to steeply increasing freight costs, is making it increasingly difficult for Ernest Adams to be competitive in price in large sections of this attractive market.” Ernest Adams was well into its current trading year, and the - company appeared to be set for a good result. Since the March 31 balance date there had been quite an improvement in . the company’s trading. “We have taken out our accounts for the June 30 quarter, and both sales and profits for the period are ahead of comparative figures for the previous year. “By far the greater part of the increased sales are being achieved in the North Island, where we have continued to expand the market coverage; but a worthwhile increase is also being made in the South Island. “I am -sure that this con-

stant attention to quality is contributing to our success,” he said. --

Because of the expansion of business at a time of inflation, the directors were conscious of keeping the liquidity position under review. The company’s bankers had been helpful and the company had no difficulty in financing this year’s activities.

“However, looking ahead two or three years, projecting our current growth rate, and assuming there will be little change in the inflation rate, Ernest Adams will need to secure additional longterm finance,” Mr Adams said.

After the meeting, Mr Adams said that the price increases in ingredients used by the company was causing “great” concern. But, he said that there had been no resistance to the August 1 price increase for the company’s products. , I'