Critical meeting by Hort. Inds

Press, 5 December 1985, Page 61

Critical meeting by Hort. Inds

PA Auckland Despite announcing improved results, the directors of Horticultural Industries, Ltd, faced criticism from shareholders at the annual meeting yesterday. The chairman, Mr D. J. Davies, said that in the three months to October the group had shown a significant improvement in profit, compared with the corresponding period last year. He said the group had been considerably encouraged by the trading results of the Australian operation, and believed the growth potential in that country was at least as strong as in New Zealand. The Sydney tissue culture laboratory, which last year lost $191,000, had made a profit of $17,000 in the first three months of this year. Over all, Australian activities had achieved a profit of just over $202,000, compared with $112,000 a year earlier. Rental plant operations were 26 per cent ahead. Mr Davies said the profit would continue to be affected by the losses on orchard operations. The directors were concerned, but had not yet decided what steps to take to improve the situation. Despite these assurances, the directors had to field a number of criticisms on the performance of the group. Palmers Garden Centres were the target of much of this attention. The directors admitted they were mindful of the problems. To a proposal that suggestion boxes be put up in

each garden centre, a shareholder said: “We have elected you as directors to solve the problems. You should get on with the job or get out.” And to a shareholder’s expression of disappointment at the share price level, another said he did not mind it dropping farther, adding: “Maybe then Brierley (which holds 20 per cent of the capital) would step in and take over the company and turn it into a lean, profitable, operation.”