O’Brien result worse

Press, 21 February 1986, Page 10

O’Brien result worse

M. O’Brien and Company, Ltd, the Christchurch shoe manufacturer, is deeper in the red than the directors ; had predicted in December.

The directors announced a total interim loss of $1,419,000 in the six months to December 31, compared with the predicted loss of SI.4M.

Included in the result was an extraordinary loss of $235,000. The final result compares with a net profit of $155,989 in the previous corresponding period. The directors said it had been considered prudent to take the extraordinary losses in the first six months so that trading in the second half could start unencumbered by previous losses. Hopefully, the company would break even in this period, they said.

The extraordinary item included accelerated depreciation of certain machinery and other inevitable costs associated with a big restructuring. Restructuring of the company had begun and would incorporate new marketing policies, import strategies, and improved production methods, the directors said. No future benefit had been provided for on the trading loss . of extraordinary items. Income tax losses would therefore be available to set off against future products. Turnover fell 15.3 per cent to $4,736,000. Tax was nil ($95,000 previously).

No dividend has been declared by the directors. In the first half of 1985 an interim dividend of 2.5 c a share (5 per cent) was declared.