Hi-Tec in the red

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The Independent Online
Hi-Tec Sports, the Southend-based leisure footwear manufacturer, confirmed yesterday that it had slumped into the red in the 12 months to January. Pre-tax profits of £1.13m in 1993-94 turned into a deficit of £6.96m.

The loss follows a £5.91m write-off of goodwill on the sale of a 60 per cent stake in Cofex, a Dutch company that makes jackets. The write-off was foreshadowed in the interim results last October, but the company's gloomy prognosis of the trading outlook presented then was repeated yesterday.

Frank van Wezel, chairman, said: "Since the end of January, we have continued to find trading tough. In the remaining few weeks to the end of April, I do not anticipate an improvement in our performance compared with the same period last year, when we made a small loss."

Mr van Wezel added that changes to the operation and management of the business over the past two years would improve profitability in 1995-96.

The latest figures were muddied by the disposal of the stake in Cofex and a change in the year-end, but they showed operating profits from continuing businesses had slumped from £6.97m to £3.86m.

Earnings per share of 3.7p last time turned into a loss of 15.3p.

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