Odlins improving

Press, 29 August 1980, Page 8

Odlins improving

'; Group sales by Odlins, t Ltd, are ahead 16.2 per cent in the first four months to July 31 of the current financial year, said the chairman (Mr L. M. Papps) at the annual meeting in Wellington yesterday. "■■. /■ The increase was the result of a higher level of trading, coupled with the acquisitions made last year. Since the March 31 balance date, Odlins had acquired William Crosher and Sons, Ltd, the Auckland electrical ( wholesale merchant, which) should enhance the activities] of P. C. Blenkarne, Ltd, the! who 1 1 y-owned electrical 1 wholesale subsidiary.

“Trading was difficult throughout the year under review, and the problems of continuing high inflation, the depressed level of new housing construction, .a competitive marketing environment, and the high cost of finance are likely to be with the company for some time at least through the current trading year,” he said.

Odlins’ management continued to seek ways to improve profitability and the return on funds, but this was becoming difficult because of the slow domestic market.

The recently announced new policy on housing loans through the Housing Corporation was unlikely to lead to increased housing construe-! tion, and the reduction in] finance available from that!

(government department! would tighten a sector of the market which had been showing significant growth, Mr. Paipps said. “In spite of these difficulties, however, profit for the first quarter of the new financial year was ahead of the corresponding period last' year.” . • During the last financial year export sales by the group rose 67 per cent to $5.6 million, or 5 per cent of .the total group sales. | Exports in the new finanjcial year were continuing to (rise, and a substantial increase was expected by the) March 31 balance date.

All divisions traded profi- ' tably during the last financial year, but some units within the division did not achieve results acceptable to management. In line with the objective of improving the return on funds, units which were considered to be working unsatisfactorily would be either restructured, closed down, or subject to other appropriate action, Mr Papps said. In recent years the Odlins group had . grown considerably, and turnover in the .last four years had doubled. This growth had placed strains on the accomodation requirements of the head office, and it has been decided to build a four-story head office and Wellington [ area administration building at the Petone timber yards.