L. D. Nathan looks to core

Press, 3 December 1987, Page 32

L. D. Nathan looks to core

The recent corporate restructuring has L. D. Nathan and Company well placed to develop its core businesses, said the managing director, Mr Peter Cooper. In the annual report, Mr Cooper says the changes included closing or selling unprofitable businesses, rationalising surplus stock, and reorganising into four business sectors: retailing, property, consumer products, and investment services.

The new structure would provide the framework for a “new era of activity,” he said.

Nathan was "comfortable” with its activities, and would not be diverted by one-off, speculative opportunities, he said.

It would, however, take full advantage of the benefits available from the property and investment banking skills into retailing and consumer marketing activities. Mr Cooper says the company is committed to several clear principles: • Owning 100 per cent of its businesses wherever possible and running them within the four business sectors;

• Enhancing the already strong cashflow of the company;

• Maintaining or achieving dominant positions in its key markets;

• Improving rewards for employees based on achievement and performance. Nathan had the ability to use the cashflow from its high performing areas to make substantial investments In other areas which met the criteria for returns.

Although the company’s primary commitment was to New Zealand, its ambitions also lay in the Pacific rim region. It was Investigating some prospects, which should be realised this year. As previously reported, Nathan announced an audited group net trading profit, before extraordinaries, of $52,890,000 for the year ended August 31, an increase of 78%. The increased profit was achieved on a turnover of $1347M, up 16%. This was the first full year of trading since the merger with Mace Development Corporation, and the acquisition of 100% of Oasis Industries.