Retail downturn depresses Designer Textiles result

Two non-cash charges - $397,000 for goodwill on the acquisition of Mollers Textiles and a special depreciation write-down of $1.171 million - take account of much of the poorer result.

However operating profit after tax was also down $227,000 on last year, at $1.447 million.

Chairman Kerry Harding says Mollers, which makes furnishing fabrics, traded to pre-purchase expectations but a depressed market affected other operations.

"The margins of both Prato Textiles and Logan Textiles were adversely affected by the retail downturns in New Zealand and Australia during the second half of the year, although turnover was held. Trading remained difficult for both operations."

A positive spin is the sales of Merino fabrics from Prato, which the company says developed significantly during the year to become a major product area. Most product was manufactured for Northern Hemisphere consumers and growth in this area is expected to continue.

A final dividend of 1 cent per share fully imputed will be paid on October 6, making a total dividend for the year of 2 cents, compared with 3 cents in 1999.

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.