Redundancy costs hold back Allied Textiles

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The Independent Online
RESTRUCTURING and redundancy costs of pounds 500,000 helped to depress full-year results at Allied Textiles, the Yorkshire-based wool group, writes John Murray.

The group made profits of pounds 12.7m ( pounds 13.2m) before tax in the year to 30 September on turnover that rose pounds 17m to pounds 129m.

The contribution from the principal textiles business rose to pounds 8.64m ( pounds 8.53m). Three property disposals kept the financial division within reach of the previous year's result at pounds 4m ( pounds 4.6m).

Peter Honeysett, chairman, warned that the problems faced by the property market meant that the group's income would fluctuate significantly from year to year. He said the market had yet to respond to the sharp reduction in interest rates.

The restructuring came in textiles, where three factories were closed with the loss of 70 jobs.

Mr Honeysett said that the general economic climate remained unsettled, with shorter order books and variable margins. However he said that the devaluation of sterling, lower interest rates, the Gatt agreement and the Government's Autumn Statement measures should provide opportunities at home and abroad.

The total dividend rises to 12.6p (12.3p) on earnings per share that fell to 30.8p (31.7p). Allied shares rose 8p to 453p.

Worthington, the sewing thread maker, saw profits dip 39 per cent to pounds 305,000 for the six months to 30 September. The figures for 1991 were restated to include the results of two acquisitions. Turnover rose to pounds 7.3m ( pounds 6.1m).

Jack Grant, chairman, said the results were severely depressed by the button wholesaling business and London-based trimming operation. The two acquisitions - Hulme Holmberg and Atorp - had exceeded expectations.

The interim dividend is higher at 0.5p. The shares were unchanged at 36p.