Lectrica profit drops

Press, 19 July 1988, Page 22

Lectrica profit drops

PA Wellington Slowing sales and tougher competition reflected in a sharp fall in the after-tax earnings of lighting retailer, Lectrica Holdings, Ltd, formerly Electrocorp, to $16,000 in the year ended March 31. That was turned into a bottomline loss of $324,000 after inclusion of a $340,000 extraordinary deduction. The latter reflected costs in restructuring the business in face of what the directors said was a “new and most competitive phase” in light retailing. Lectrica, now a 52 per cent subsidiary of Tag Corp, Ltd, had a $1,499,000 bottomline profit in the year ended March, 1987, when extraordinaries were a $479,000 gain. Wholesale, commercial and manufacturing activities of lighting and nonlighting products were, in contrast, “reasonably successful” in the latest year, the directors said. Recognising the problems in retail, the directors have already moved to streamline and upgrade Lectrica’s lighting stores, including a consolidation under one holding company. The audited results show a drop in turnover to $20,976,000 (from $26,162,000), giving a vastly reduced profit of $lOOO ($2,068,000). Tax was a credit of $15,000 ($1,048,000 deduction).

The directors said the previous figures are not strictly comparable because they include 17 months of trading for two subsidiaries — Alpha and Freelite. No final dividend is recommended, but they predict a pay-out for the current year.