Nuplex predicts 30pc profit rise

Chemical manufacturer Nuplex has posted a half-year net profit after tax of $15.49 million - a 64 per cent increase on the same period the previous year - and says it is on track to lift full-year profit by more than 30 per cent on last year.

Nuplex says the result for the six months to December 31 was achieved on revenue of $330.05 million, a 4 per cent improvement from the previous corresponding period.

Earnings before interest, tax, depreciation and amortisation (ebitda) across the company rose by 5 per cent to $37 million.

Chairman Fred Holland said Australian operations provided "the backbone of the company's performance", contributing 74 per cent of total sales and 68 per cent of ebitda.

New Zealand's contribution to ebitda declined 13 per cent on static sales of $75 million.

"This excellent start to the year will provide a solid foundation for the full year, and the company is forecasting an end-of-year result more than 30 per cent above the $20.6 million in the prior year," Holland said.

Nuplex will pay a fully imputed interim dividend of 11.5c a share on April 2. Shareholders not resident in New Zealand or Australia will receive a supplementary 2.029c per share dividend.

Holland said Nuplex's operations in Australia and Vietnam were delivering sound revenue and profit growth.

* Designer Textiles has posted a reduced interim profit for the six months to December 31 of $1.58 million, compared to $1.65 million in the same period the previous year.

The drop came on the back of increased revenue, which clocked in at $34.4 million compared to the previous year's $32.6 million.

Managing director Mark Bilton said the result was satisfactory but "there was considerable room to improve performance in most of the company's operations".

Designer Textiles International, which specialises in merino products, performed well but was adversely affected by the high New Zealand dollar.

The Mollers unit, which focuses on ready-made drapes and homeware products, made an "outstanding contribution" to the group, Bilton said.

However, Australian subsidiary Logan Textiles, which makes swimwear and lycra, "needs, and is receiving, real focus".

An improvement in Logan's profitability was expected in the second half. The company's new subsidiary, Michele Ann Productions, which it bought in December, contributed $102,000 to the profit.

Last year's interim dividend of 1.125c would not be repeated and the company said interim dividends would stop until further notice.

However, a full-year return of up to 25 per cent of net profit for the year could be expected.

The company's end-of-year result is expected to be equal to or slightly below that of last year, when it came in at $3.4 million. Earnings per share, boosted by the company's share buy-back scheme, were 4.9c compared with 4.5c last year. The company's share price fell 3c on Friday to 85c.

* Meanwhile, Wellington Drive Technologies (WDT) reported a loss of $1.25 million for the six months to December 31, a slight improvement on the $1.29 million loss posted for the same period last year.

The dollar's high value had a neutral impact on the motor manufacturer, which imports components and exports finished products.

The company said interest in the company's products and services continued to grow in the key markets of Europe and the United States.

It forecast an improvement in revenues during the remainder of the financial year.

WDT said although it was entering a phase where growth would be more predictable, it had a way to go to fully establish itself in its target markets. Its shares closed 2c stronger at 72c on Friday.Irene Chapple, NZPA