Datacom profit falls

Press, 12 May 1987, Page 31

Datacom profit falls

After-tax profit of the Datacom Group for the year eaded Decemter 31 is down 23.5 per cent at $683,480, compered with $893,856 In 1985.

Revenue was up H-3 per cent at $46.9M. Mr Paul Hargreaves, the chief executive, says the Datacom Group is lacing a period of considerable change as it moves into its third decade, but the management Is determined to see it adjust successfully to the challenges of the 1990 s and beyond.

“We are aiming to achieve substantial profit improvement and revenue growth over the next three years. This is supported by a commitment to strategic planning and management improvement,” he said in his annual review, presented to the Group’s annual meeting in Wellington. Mr Hargreaves said the 1986 result was affected by a loss incurred by Datacom Equipment, arising from a substantial stock write-down in the first half of the year.

Following management and organisational changes in Datacom Equipment at mid-year, improvements had been made in inventory management and internal systems and a more rigorous stock valuation policy instituted. The company traded profitably in the second half of the year.