Ahead Grp loses $249,000

Press, 1 August 1989, Page 37

Ahead Grp loses $249,000

Ahead Group, formerly Aitkenhead Group, a listed Auckland timber supplies company, reported an aftertax loss of $249,000 for the year ended March 31. This compares with a loss of $884,000 the previous’year.

No interim dividend will be paid.

There was a before-tax loss of $236,000 ($1,185,000 previously) on a turnover of $25,583,000 (compared with $23,607,000). The carried-for-ward loss is $1,032,000 ($783,000 previously).

The directors said the loss was greater than expected because of indifferent trading within sectors of the building industry. Seasonal fluctuations during winter were more prominent than in previous years. Also adding to the loss was the combination of restructuring Ahead Homes, lower profit margins at Ahead Building Supplies and a number of unforeseen bad debts, predominantly from construction companies.

Corrective measures had been taken to rectify the decline in profit of Ahead Building Supplies, the group’s merchandising operation at Pukekohe. These included the opening of the first Plnus Pete’s timberyard Fraemohs Industries, after a slow sales start to the year, had spread its marketing and franchise operation to cover the three main centres in New Zealand.