77% fall in profit by Masport

Press, 23 July 1986, Page 36

77% fall in profit by Masport

PA Wellington Masport, Ltd, reports a 77 per cent drop in profit before and extraordinary items to $975,000 for the year ended March 31, compared with $4,303,000 for the previous year. No dividend payment was recommended, Masport said in a statement to the Stock Exchange. With SSIM of its S9IM (S7BM) turnover in overseas sales, Masport had found the full rigours of deregulation a “massive” challenge, with interest and exchange rate losses eroding profits by SSM. Profit before tax and abnormal items was $1,525,000 ($5,402,000). Abnormal items of $1,353,000 (nil) this year were made up of bad and doubtful debt write-offs for Masport’s overseas subsidiaries, stock obsolescence write-offs and retirement allowances. Minority interests of $192,000 ($127,000) were deducted from the profit. Masport expected to have tax of $995,000 returned ($972,000 paid),

and there was an extraordinary income of $599,000 ($6000) from the sale of property. Preliminary expenses of $294,000 ($147,000) were deducted, bringing the final profit to $1,280,000 ($4,150,000). The directors appropriated $1,250,000 of the final profit for restructuring of the company in the 1986/87 year. “During the year there have been major changes in shareholding, board members and management,” the statement said. “A massive reconstruction is occurring, which will release funds of about SI2M from non-earning assets and stocks.” Manufacturing, sales and distribution in D. H. Davies, Barlow, Masport Singapore, Masport Malaysia and Masport USA, were being rationalised, and new production methods installed at Mt Wellington. These would bring what was now a “lean and profit centred company back on track,” the statement said.