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New major shareholder for Designer Textiles

By Phil Boeyen, ShareChat Business News Editor

Monday 6th November 2000

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Designer Textiles has welcomed a new major shareholder on board and says the first quarter of the new financial year is proceeding to budget.

Speaking at the its AGM the company's chairman, Kerry Harding, told shareholders that around 20% of the company's shares changed hands last week at a premium to recent prices.

"A new major holder, who we believe is a Christchurch based family trust, purchased the majority of the shares. It is pleasing to see investors recognising the underlying discount in what was the then market price."

Designer Textiles says it has begun the new trading year on budget, but warned that New Zealand business conditions are not showing any sign of recovery.

"The currency crisis is increasing raw material costs and there is a lag period before we can recover the increases in prices. As a consequence of the deterioration conditions the second half the final trading profit for the year was well below earlier expectations."

Mr Harding says trading conditions in Australia however have improved since July.

"Australia, which had been slow all year, was significantly impacted by price pressure and uncertainty in the lead up to the introduction of GST. Clothing prices were subject to the full 10% increase and retailers were unsure of the effect on consumer demand. Since July, conditions have normalised significantly and results are improved"

Designer Textiles posted a loss of $121,000 for the year to June compared with last year's $1.617 million dollar profit. The result included two non-cash charges - $397,000 for goodwill on the acquisition of Mollers Textiles and a special depreciation write-down of $1.171 million.

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