Odlins sales ahead in four months

Press, 29 August 1984, Page 36

Odlins sales ahead in four months

PA Wellington Group sales by Odlins, Ltd, for the four months to July were 23 per cent ahead of the same period last year, said the chairman, Mr Doug Hazard, at the annual meeting. All trading divisions contributed to the increase and the profit was better than budget and “very substantially ahead of last year,” he said.

Since balance date the company had sold several surplus properties, the proceeds of which would be available for tax-free distribution. In addition, an announcement was due on the development of a medium density fibreboard plant by Nelson Pine Forest, Ltd, — a joint venture company established by Odlins and Transport Nelson, Ltd. Also since balance date, the company had acquired the 50 per cent interest in Marton sawmillers, Gorton Bros, Ltd, not previously owned by Odlins, Mr Hazard said. Gorton Bros provides sawn timber for both local and export markets. As previously reported, Odlins direct export sales increased 17 per cent in the last financial year and were continuing to grow, Mr Hazard said. But further growth was being hampered by the company’s productive capacity. “Timber, for example, is

in short supply and we are embarrassed by orders we cannot fulfil,” he said. The company was investing more in afforestation in a policy to become selfsufficient in timber resources. “Although our forestry holdings are now quite substantial we have some way to go before we can accept these as adequate,” he said. Although tax-paid profits were 39 per cent ahead of the previous year, this was still not considered satisfactory. ‘‘A significant feature of last year’s trading was the fact that operating expenses in total were slightly less than last year and also below budget,” Mr Hazard said. The year was one of consolidation rather than expansion and Odlins had rationalised its paint and wallpaper merchandising activities. The company had also increased its market share and remained in the top position as builders’ supplies merchants, he said. Odlins’ Australian company, Odlins-McKenna-Royce Pty, Ltd, formerly an associate, was restructured as a subsidiary during the year with 93.3 per cent of the shares held by Odlins. "We suffered substantial losses in Australia, but these are now behind us and have been fully written off in the 1984 group accounts,” Mr Hazard said.

Looking to the year ahead, there was no reason why the present high level of group trading could not continue, he said. Although there was no longer a complete dependence on the housing market, it was hoped there would be benefits for the company in the recognition that there was a need for more low cost housing. “We believe the present Government recognises this fact and will take positive steps to ease the situation,” he said. Mr Hazard lent his support to the Labour Governi ment, saying that corrective measures were unavoidable > to right the “many imbali ances in the community”. “Above all we need settled and publicly stated i medium to long term govI emment policy under which I the commercial world can ; itself plan with confidence,” he said. i This was in “complete ! contrast to the unpredicti able day-to-day financial i and economic management of the previous administration in its latter years.” He welcomed devaluation i and the summit conference, I expressing the hope that it ! would soon be possible to : reward Odlins staff with, wage increases made iml possible by the price freeze. > Shareholders voted to in- ! crease directors’ fees from !. $55,000 to $70,000 at the ■ meeting — the first increase since 1981.