Brierley treatment boosts Huttons

Press, 13 October 1982, Page 25

Brierley treatment boosts Huttons

PA Wellington Huttons NZ Ltd. the old Gear Meat Company which was given the Brierley Investments reorganisation treatment, made a bigger profit in the first seven months than the "old'' Gear Meat made in a century of operation. The executive director of Huttons. Mr R. T. Martin, says in the annual report that Gear never produced a profit of the magnitude of the $l.l million trading profit and $1.9 million capital .profit. He says that J. C. Hutton, the major trading subsidiary and major contributor to this year's result, also produced a profit well in excess of any result it has previously recorded. A number of significant changes in the operation of the company have occurred since the Gear works at Petone was sold in July. 1980. In 1981 the chain of butcher shops were sold, and the company’s farms were

progressively sold. At last balance date Gear Meat had an investment in a large multi-storey office block in Wellington, three butcher shops in Gisborne, a by-products operation in Wellington, and cash in the bank.

Since then the company bought all the shares in J. C. Hutton. Ltd. sold its share of the office block and changed its name to Huttons NZ. Brierley Investments took more than 50 per cent of the Gear shares.

"The Huttons acquisition has proved to be a very successful one. The company has produced t excellent profits this year, the staff is dedicated ' and highly motivated, and the assets are in a good state of repair,” Mr Martin says. ”J. C. Hutton is a larger company than is often realised by the New Zealand public — with projected turnover of $45 million, more than 600 employees, and gross assets exceeding $l5 million."

Mr Martin says that J. C. Hutton is operating in a competitive environment, and the operation is continually under attack from smaller backyard operators who neither have to support a national distribution network nor a company with stringent hygiene regulations. But the staff are confident they can remain No. 1 in the market place.

The profit and loss statement shows that the operating profit was $2,025,000 (last year $llB,OOO loss). But after deducting both an exchange loss of $280,000 and the share of profits earned prior to purchase of $621,000. trading profit came to $1,124,000 ($llB,OOO loss). Because of tax losses, no tax provisions are necessary.

Shareholders’ funds are $5,779,000 ($730,000) including ordinary capital of $5,507,000 ($2,848,000) capital reserves of $2,262,000 ($940,000) and revenue reserve deficit of $1,990,000 ($3,058,000).