Agencies to boost Optical sales?

Press, 16 July 1983, Page 22

Agencies to boost Optical sales?

Optical Holdings, Ltd, had secured a number of new agencies which were expected to significantly help sales and profits, said the chairman, Mr P. H. Masfen, in the annual report. The basis of a sound future had been laid during the period under review, and the directors were confident about the current year. The net profit for the three months to June 30 was ahead of budget, and the forward orders were ahead of last year, he said. Although no ordinary dividend was recommended for the last financial year, the directors expected that a dividend would be paid for the current year. The 15-month period under review had been a period of consolidation after restructuring. The objective of returning the company to a satisfactory trading profit at the earliest opportunity had been expensive. Extraordinary write-offs had totalled $lBB,OOO.

These write-offs consisted of expenses and costs associated with stopping significant sectors of the company’s activities. In addition, stock write-downs of $43,000 had been charged against the trading profit, he said.

Emphasis had been placed on reducing expenses, and significant savings had been achieved. These would be of benefit in future years. In the marketing division, there had been an improvement in the quality of imported and manufactured products. This had produced increased sales, and together with better efficiency, greater profitability was being made, Mr Masfen said.

For the manufacturing division, the benefits of improved production techniques and increased export markets were being reflected in present results. The Australian subsidiaries were helping market the company’s products, but

results last year were disappointing. Management were reviewing these activities to establish a sound base for trading, he said. As reported, Optical incurred a group net loss of $21,000 in the 15 months to March 31, compared with a profit of $19,000 in the previous corresponding period. Before an extraordinary loss of $lBB,OOO, the group net trading profit was $167,000.

The profit was after providing $21,000 more for depreciation at $104,000. There was a tax credit of $lOOO compared with a provision of $35,000 previously. Sales rose 30.6 per cent to $7,683,000. Shareholders’ funds fell $78,000 to $1,478,000, including steady ordinary capital of $1,141,000.

Working capital fell $55,000 to $1,277,000, and the current ratio declined from 1.7 to 1.5 to one. The net asset backing a 50c share for the 15 months was 65c (68c previously).