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Taylors annual profit drops 35% on investment costs

Monday 25th August 2008

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Taylors Group, the laundry company controlled by Australia's Spotless Group, posted a 35% decline in profit on costs to finance more efficient equipment.

Net income fell to NZ$2.37 million in the 12 months ended June 30 from NZ$3.6 million a year earlier, the company said in a statement. Sales rose 3.2% to NZ$68.8 million.

Taylors has six plants in New Zealand, processing more than 30,000 tonnes of laundry each year for clients ranging from health boards to Glenbrook steel mill and the police.

It faced disruptions in the latest 12 months on installing new equipment in Christchurch and missed its target to reduce plant operating hours in Auckland, driving up costs. Capital works boosted interest costs by NZ$600,000 and depreciation rose by NZ$400,000.

Earning are forecast to increase in the current year, Geoff Ricketts said in a statement, without being more specific.

Taylors will pay a final dividend of 6 cents a share, leaving the full-year payment unchanged from a year earlier at 12 cents.

Shares of the company were unchanged at NZ$1.30 and have declined 31% in the past 12 months.

By Jonathan Underhill

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