Tourism downturn hits Fullers Corp

Press, 24 March 1988, Page 32

Tourism downturn hits Fullers Corp

Fullers Corporation, the tourist! operator, has trimmed its Kaitaia business and laid bff staff because of the downturn in the tourist industry, j The chairman, Mr Lance;Julian, said that the measures were necessary because of the fall in the numbers of New, Zealand and overseas tourists visiting Northland!] On i March Hl,! Fullers reported a $3.9M 'net trading loss, in the 11 months to October 31,[arid a total loss of $7.2M after including flotation | costs and writing off goodwill. ! [ The| high value of the New Zealand dollar, poor weather for two consecutive summers, l and more motorists driving; to Cape Reinga on ari improved road made it uneconomic for Fullers to maintain its operation at ; its ] present size in Kaitaia, he said. Rerisons given[ for the loss were the high value; of the dollar, poor

weather, competition, and high wage rates. [. The latest moves by Fullers involve' it closing and sub-leasing [ its property and workshops in Kaitaia, selling its school bus and charter operations, and selling surplus coaches. j | i Three ! out of) the 13 full time staff at Kaitaia will keep their jobs and a sales office will be maintained in the town. Buses for Cape Reinga [will now leave from Paihia instead of Kaitaia. i [ Fullers was committed to tourism and Northland and was workin to promote the region, Mr Julian said. [ “Long term, [we have always viewed Northland as a region of ! tremendous potential, but as) a public company with a duty to return a benefit [to shareholders we had no choice but to act.” . [ The Paihia office was being expanded [ to cope

with . the new work, including short tours out of the Bay of Islands, and more effort was| being made to market the company’s services. I | ‘ | No dividend was recommended when Fullers reported its loss and the directors also decided to waive their lees, -i In | September, Rada Corporation took a 42 per cent; interest in Fullers. The remaining shareholders were Jagwar Holdings (50% owned by Omnicorp Investments) 22%, Julian family interests 10%, and the public 23%. j! I Since then control of Omnicorp has gone to Omni Holdings, AG, of Switzerland, and :i Rada taken over by Elders IXL, of Australia. Both companies are considering selling investments in other companies. tn December, i Neimans Group announced jit had bought 7.4% of Fullers.!