NZLL doing well

Press, 2 June 1989, Page 15

NZLL doing well

New Zealand Light Leathers expects a considerably higher profit this year, the chairman, Mr E. J. Hazlett, says in his report with the annual accounts. “The increased demand for finished leather world wide has been maintained in the current year, and this is reflecting in increased profits earned through generating increased production through the one Washdyke Tannery." The Hastings Tannery has been successfully sold since balance date. It was this tannery that was responsible for most of this year’s reduction in revenue. This fell $34

million to $29 million, with $27 million of the reduction because of Hastings. As previously reported, in spite of the lower revenue the after-tax profit for the year ended December 31 was $523,000, compared with $770,000 the previous year. Mr Hazlett says the Washdyke Tannery has had a good year with profitable trading in finished leather balancing the cessation of semiprocessed product. "Emphasis has now been firmly directed to the finished leather trade, to increasing the volume of production at Washdyke, and the profitable marketing of our

finished product world wide.” A marketing office and warehouse have been opened in Sydney. The general manager. Mr T. Cowell, says in a review of operations that a turnaround from a depressed first half was experienced during the latter part of the year, with a heightened demand for garment leathers, particularly in the Australasian market.

Additional plant and equipment has been acquired. The new financial year has opened on a positive note with strong demand for the company's products, Mr Cowell says.