W. Jeffrey restructure gets blame

Press, 30 August 1986, Page 27

W. Jeffrey restructure gets blame

PA Wellington The Christchurch-based stationer and printer, Williamson Jeffrey, Ltd, yesterday blamed restructuring costs for its fall in profit to $196,000 ($1,420,000 last year) for the year ended June 30. There would be no final dividend, the directors said in a statement to the Stock Exchange. The fall was despite a rise in turnover to $55,820,000 ($53,067,000). The result was affected by relocation costs and other expenses arising from the restructuring of the company’s distribution operations. Difficult trading conditions also contributed, particularly in the

graphics division and in export activities. “This indicates the necessity for further rationalisation in these areas,” the directors said. The reduction in export incentives, together with exchange losses, resulted in a sharp drop in earnings. Although a significant part of the reduction in profit was from non-re-curring costs, the directors were conscious of the need for further restructuring and economies. In May, Whitcoulls Group, Ltd, who already held 56 per cent of the capital, made a take-over offer for the remaining shares.

Whitcoulls now holds 95 per cent.