Intertasman earns $147,000 net

Press, 15 December 1983, Page 32

Intertasman earns $147,000 net

PA Wellington The Wellington-based furniture manufacturers, the Intertasman Group, have announced a $243,000 increase in' pre-tax profit for the six months ended September 30, 1983. Profit before tax was $253,000 compared with $lO,OOO for the same period in 1982. Net profit for the period was $147,000. The chairman, Mr T. R. Reesby, said in a statement that the increased profit came from acquisitions made by Intertasman during the period, including Nova Interiors, Ltd, the I.D. Group (N.Z.), Ltd, and J.M.K. Furnishings, Ltd. Sales by the group increased from $119,000 to $4.2 million. Mr Reesby announced that during the next six months the company would

open a new 1710 square metre factory to manufacture new furniture lines. Total furniture production would be more than doubled and at least one production line would be set aside for export. Intertasman would also strengthen its Australian sales office and had negotiated an agreement with a leading Australian company to market Intertasman’s New Zealand-made products. “The purchase of the Nova Group of Companies has given Intertasman a diversified and solid trading base from which further growth will be achieved,” said Mr Reesby. “To bring Intertasman’s capital into line with its present level of activities the company offered shareholders 1.8 million new shares at a ratio of six for one last

August. “We are pleased with the extent to which the offer was taken up and this now provides a capital base for the company’s projected expansion.” He was optimistic about results for the second half of the year. The I.D. Group has record orders on hand and 90 per cent of its profit would come into the group during the period. Sales and projected profits from the commercial operations of Nova Interiors were well above expectations, and although the domestic furniture sales had suffered from the slow national trend, this division also made a higher profit than expected during the six months. Because of the Limitation of Distribution Regulations no interim dividend can be declared or paid.