Takeover of T. J. Edmonds

Press, 29 January 1982, Page 12

Takeover of T. J. Edmonds

Sir,—ln August, 1981, the chairman of T. J. Edmonds, Ltd, said- in his report that the company had earned a group tax-paid-profit of $821,000. He viewed “with confidence the prospects for another successful financial year.” Four months later he estimated a loss of $1.5 million for the current year — a reversal of •fortunes for a company that has traded profitably for a century. I, like other shareholders who are asked to agree to a ’takeover, am puzzled. In December, 1981, the chairman blamed the Queensland drought and German devaluation; but he knew of these last August, . expecting “rapid improvement ... Of profitability.” Any contrary statement by the general manager at the annual meeting

was inaudible to me. Were there serious errors of judgment? All directors should openly say that they were fully and frequently informed of continuing losses, particularly in Australia, and should explain why, after August, 1981, they did not disclose the trends to shareholders. — Yours, etc.,. I. V. BALLANTYNE. January 20, 1982.

[The chairman of T. J. Edmonds, Ltd, Mr C. W. Evans, replies: “In view of the current take-over offer for the shares in T. J. Edmonds, Limited, by H. W. Smith, Limited, it would not be appropriate to engage in discussions concerning the company’s affairs through the columns' of your newspaper. If Mrs Ballantyne cares to get in touch with me, I would be pleased to discuss with her the matter raised in her letter.”]