Intertasman plans further acquisitions

Press, 10 October 1984, Page 32

Intertasman plans further acquisitions

Intertasman N.Z. Group, Ltd, the Wellington based furniture manufacturer, says it plans further company acquisitions to build on its growth of the last two years.

The company’s annual report reviews Intertasman’s dramatic rise in turnover and profit in the year to last March 31 after acquisition of the Nova Group of companies, an established furniture maker. The latest was the first full year in which Nova contributed to Intertasman results.

Revenue for the year was $8,604,687, compared with $1,708,885, and the group’s net earnings after tax were $489,649, up 1017 per cent from $48,165 in the previous year.

“The purchase of the Nova Group of companies has given Intertasman a diversified and solid trading base from which further growth will be achieved,” the directors say. They say changes will be

made to the group’s structure to make it “more responsive to growth opportunities arid the challenges of greater profitability.” Intertasman’s commercial interiors divisions — Nova Contracts and I.D. Group — will be merged, and JMK Furnishings, Ltd, has been absorbed by Intertasman Products, Ltd, to form one manufacturing entity. JMK Furnishings was acquired in March 1982. “A number of exciting prospects are currently underway. Based on work in hand and future prospects, the directors are confident that the profit reported for the current year will be exceeded in the next financial year,” the directors say. Further profitable operating companies to increase the group’s growth rate will be acquired once the restructuring is complete, they say. Intertasman’s issued and' paid up capital at March 31 was $1,050,000, compared with $135,320 a year ago. This is after a six-for-one issue of new shares to shareholders in August last

year. The directors note that the issue was heavily subscribed and amounted to a 600 per cent rise in the company’s capital. In May this year, the company made a placement of 210,000 ordinary 50c shares at $1.50 each for cash to help with the financing of the buying of land, buildings and other facilities in Lower Hutt.

The directors say the purchase has enabled Intertasman to substantially increase its manufacturing capacity. The group’s manufacturing operations are well placed to take up the opportunities offered by export markets, and devaluation of the New Zealand dollar has created new demands for the group’s products, the director say.

Further finance to fund expansion will be raised in an issue of specified preference shares. The shareholders will be offered one 50c specified preference share for every three ordinary shares held with a right to apply for additional shares.