Lasercorp profit slumps 85 p.c.

Press, 8 December 1988, Page 25

Lasercorp profit slumps 85 p.c.

Lasercorp Holdings, the Christchurch-based electrical goods distributor, had a slump in total profits in the half-year ended September 30. The company, about 60 per cent owned by PDL Holdings, yesterday reported a total profit of $253,000, down 85 per cent on the previous corresponding figures of $1,682,000.

The directors have recommended that no divi-

dend be paid. Lasercorp’s chairman, Sir Robertson Stewart, said that since the company’s annual balance date of March 31, the electrical goods market had experienced a decline in line with the recession in New Zealand. The recession had affected housing and construction.

‘Our restructuring programme has therefore continued so that the

member companies making up the Lasercorp group maintain profitability in a declining market.” Like other companies without overseas operations, Lasercorp must wait for the Government’s initiative in bringing stability and confidence back to the market, he said. The directors had decided against declaring an interim dividend, but the company could be expected to re-establish its

dividend commitment if the economy recovered in the New Year. Lasercorp was continuing its claim over stock valuations covering the acquisition of Neeco. It is hoped that these claims will be settled m the company’s favour early in the New Year. All costs of the claim had been included in the latest accounts, he said. Lasercorp, which is based in three market

sectors — retail, building, and capital investment in the industrial area — experienced flat demand in all sectors. The opportunity has been taken during this flat period to restructure the group, cutting staff and systems, and moving the company’s administrative head office to Christchurch, which will be opened this month. Sales increased 37 per cent to $74.448M com-

pared with the previous interim period. However, after expenses the pre-tax profit was well down, 87.6 per cent behind at $490,000. Tax took $1,895,000 less at $175,000, and there were no extraordinary items ($187,000 loss previously). Minority interests took $62,000 (nil). The equity ratio is at 55 per cent (63 per cent), and the net asset backing a share 51.7 c (52.1 c