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Retail downturn depresses Designer Textiles result

By Phil Boeyen, ShareChat Business News Editor

Monday 4th September 2000

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Designer Textiles has confirmed earlier warnings of tough times by posting a loss of $121,000 for the year to June compared with last year's $1.617 million dollar profit.

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.

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