New direction for Manawatu mills

Press, 7 May 1984, Page 30

New direction for Manawatu mills

PA Wellington Export fashion wear will be the new thrust of activities for Palmerston Northbased Manawatu Knitting Mills, Ltd, shareholders were told at the annual meeting. After 50 years in business, the company is now run by Polo Investments, Ltd, a private company controlled by owners of the clothing outlets, George Harrison and Warehouse Clothing, Company, which took a 51 per cent stake in the mills late last year.

Several new members were elected to the Manawatu board, reflecting Polo’s interests.

The retiring chairman, Mr Bob Vance, rejected previously reported suggestions that there was discord about the new board’s decision not to recommend a final dividend.

Before the Polo takeover, the original board recommended an unchanged 12 per cent final dividend despite a trading loss for the year to October of $183,803, and extraordinary losses of $299,631. Mr Vance said negotiations with Polo were amicable and his decision to retire after 19 years on the board, with 10 as chairman, was made to allow the new majority shareholders to direct the company. A newly appointed director, Mr P. J. Jackson, said future dividend policy would depend entirely on profits. As an indication of the board’s intentions, authorised capital was increased from SIM to SIOM

at the meeting. This was designed to give the board flexibility for the future, Mr Jackson said.

Immediate plans for Manawatu Knitting Mills, to be reported to the Stock Exchange this week, may include moves to publicly list other Polo Investments' interests.

The recently appointed general manager, Mr Graham Boult, formerly chief marketing executive for Southland Frozen Meat subsidiary, Knight Industries, said the company would concentrate on target marketing and product rationalisation to maximise efficiency. “One of the main problems which the company has faced has been that it was uncertain of its markets and its direction,” he said after the meeting. Manawatu Knitting Mills would continue to produce its successful lines, including woollen undergarments, but would now also look to fashion exports.

In the last month the company has installed a $250,000 Scheller knitting machine, the only one in the New Zealand knitwear industry, and bought the franchise to produce Scot-tish-based Lyle and Scott knitwear.

While traditionally slow for the industry, the second half of the financial year would, it was to be hoped, see a return to profit, Mr Boult said.

“We expect nothing outstanding would happen this year, but next year we would see a return to a good profit,” he said. Turnover for the first

four months of the financial year was ahead of projections, shareholders were told.