Allflex tags new market

Press, 27 June 1989, Page 24

Allflex tags new market

PA Wellington Allflex Holdings lifted its final profit 400 per cent in the year ended March 31 after expanding its animal eartag business to become the market leader in that field in Latin America.

In a review of the year to March 31, the Allflex chief executive, Mr lan Wilson, said the year had been one of major re-organisation for the company as it continued to develop its core business.

Allflex had extended its American operations to become the market leader in animal tagging systems in Latin America as well as North America. North America also offered more opportunities for other livestock and rural products, Mr Wilson said. The chairman, Mr Bill McPhail, said unaudited results had been included in the review to provide shareholders with an over-all picture of the company’s progress during the last 12 months. The company had changed its balance date to bring it in line with its parent company, Goodman, and will be reporting on the 15 months to June 31.

But the three-month period from April to June was traditionally the year’s quietest, so Allflex did not expect its result to differ markedly from the result to March 31, Mr McPhail said. Allflex increased its final profit to March 31 by 400 per cent to $3,803,000

(compared with the $719,000 audited profit last year). Sales were up 38 per cent to $65,149,000 ($45,714,000 previously) and profit on that up 61 per cent to $6,687,000 ($4,130,000). Tax took $2,128,000 ($1,604,000 last year), while amortisation of goodwil clipped $Bll,OOO ($500,000) and net of taxation $453,000 ($348,000). Extraordinary items eroded profit by $508,000 ($940,000 gain) to $3,803,000 ($38,000). No minority interest was paid this year ($19,000). The company’s main emphasis during the year in review had been on structuring overseas operations so they worked independently from the New Zealand business, Mr Wilson said. Allflex had transferred 50 per cent of its tag production to the United States subsidiary, Thermoform, in Dallas, as recession in New Zealand made trading difficult.

The company was concentrating on making Dallas its American base and had set up warehousing and sales facilities there.

The New Zealand tag-manufacturing operation would be substantially reduced, but the inclusion of new wool and animal handling businesses would help the cdmpany continue, Mr Wilson said. The Allflex New Zealand subsidiary will continue to supply tags to Australasia and the Pacific.