New Image posts record result, may list in Malaysia

Health and well-being company New Image Group yesterday reported a record annual net profit after tax of $15.5 million and is optimistic about new products.

The profit for the year to the end of June 30 was a sixfold increase from $2.2 million in the same period last year. The group attributes its success in part to its direct selling model.

The profit was achieved on revenue to $98.4 million, up from $39.1 million in the same period last year. The company is paying a dividend of 1c a share, taking the total for the year to 1.5c a share.

"The achievements over the past 25 years which have culminated in this tremendous result are a reflection of the effort and commitment from staff and distributors," said chairman Graeme Clegg.

The profit was achieved after incurring substantial costs in developing new markets and products. Capital expenditure for the new COL+ plant in Penrose was funded out of group cashflow. The group ended the financial year with $22.1 million of cash reserves and no bank debt.

Clegg said the board was confident, assuming no unforeseen trading circumstances, that New Image could look forward to a good increase in revenue and market activity in the coming year.

Chief executive Stephen Lyttelton said that as well as increasing business in Indonesia, New Image was pursuing opportunities in Thailand, Vietnam, South Korea and India in the next 12 months.

The company is producing a new infant formula range, ImmunoMilk, for New Image's 60 per cent owned Golden Dairy joint venture in Hong Kong and is packing other infant formula for customers in China.

During the year, 9.2 million new shares were issued.

The company is now placed in the top 50 NZX-listed companies. It said yesterday it was investigating the feasibility of floating its Malaysian subsidiary on the Malaysian stock exchange in the next calendar year.

- NZPA