Bendon $3.2M half-year profit fall of 8.5 p.c.

Press, 24 February 1987, Page 24

Bendon $3.2M half-year profit fall of 8.5 p.c.

PA Wellington Bendon Industries, Ltd, has reported an unaudited net profit of $3,254,000 for the half year ended December 31, 1986. The result is an 8.5 per cent decline on the previous corresponding period of $3,555,000. The directors have recommended a dividend of 7c a share payable on April 1. The dividend is the same as last year and . confirms the group’s policy of distributing 40 per cent of tax-paid profits, the directors said.

Bendon group sales for the half year of $42.92 million ($23,358,000) includes John Webster sales of $13.2 million, not included in previous half year figures. The sales increase excluding John Webster for the equivalent period last year was 4.8 per cent. . The pre-tax profit of $5,873 million declined by $561,000 (8.7 per cent). The disappointing second quarter trend was caused by production shortfalls despite a buoyant consumer demand, the directors said. Staff turnover, particu-

larly in areas of skilled operators, coupled with raw material supply shortages, were the main problems. Production capacity is being increased by extending existing buildings, plus the introduction of new plant . Strong recruitment and training programmes are now in place. The strong forward order position for both the domestic and export markets continues despite some signs of lower retail activity in menswear retailing. As predicted at the time

of the cash purchase, John Webster’s contribution for the half year was more than off-set by interest costs, the directors said. The second half trading is confidently expected to generate a year-end profit in line with last year’s results. In addition, the Australian Government has recently clarified a protection regime for Australian and New Zealand manufacturers in the Australian market This enables Bendon to take the best possible advantage of these opportunities, the directors said.