MKM plans recovery

Press, 14 June 1984, Page 28

MKM plans recovery

Manawatu Knitting Mills, Ltd, yesterday announced a $99,000 loss for the six months to April 30, but predicted a “substantial profit” and a final dividend for the full year. The company also announced a change in its name and the acquisition of several clothing companies as part of its restructuring programme.

That programme was “well advanced and expected to be complete by early 1985.” The new name is Apparel Holdings, Ltd.

The unaudited result for the latest half year compared with a profit of $112,000 for the previous corresponding period and was after extraordinary costs of $113,000 (nil last year). A trading loss and further extraordinary costs were expected for the full year at Palmerston North, the company said.

The latest result included a nil tax provision and no interim dividend would be

paid. Agreement had been reached, subject to the necessary approvals to buy Carters Fashions, Ltd, a Wellington clothing retailer, and The French Pant Company, Ltd, an Auckland clothing manufacturer. The company also said it had been told by the Examiner of Commercial Practices that the purchase of the net assets of Apparel Holdings, Ltd, and its subsidiaries — Earlybird Fashions, Ltd, and Earlybird Fashions (Mount Roskill), Ltd — did not require approval under the Commerce Act.

An extraordinary meeting of shareholders would be held on July 24 to authorise the issue for cash of additional stock units, to approve the terms of the Apparel Holdings, Carters Fashions and The French Pant Company purchases.

The shareholders would be asked to increase the number of directors to 10, and approve the company’s name change.