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Mercer Group reduces loss as domestic demand drops

Mercer Group reported a loss of $313,000 in the six months to December 31 compared with a loss of $847,000 last year.This year's loss includes a deficit of $146,000 from discontinued activities.Income from continuing businesses of $19.46 million compared

NZPA
Mon, 01 Mar 2010

Mercer Group reported a loss of $313,000 in the six months to December 31 compared with a loss of $847,000 last year.

This year's loss includes a deficit of $146,000 from discontinued activities.

Income from continuing businesses of $19.46 million compared with $17.77 million last year.

Directors determined that it was not appropriate to pay an interim dividend.

The Mercer Stainless fabrication business comprises the Christchurch and New Plymouth workshops in New Zealand and the Mercer Inmotion Pty business based in Brisbane.

Sales for the New Zealand activities were $5.8 million, down from $9.2 million for the same period last year, reflecting a substantial reduction in workloads attributable to the delay in dairy industry capital projects.

Some redundancies were required and the Christchurch workshop implemented a four-day working week.

The workload for the second half had improved but was not at the levels experienced in previous years. Cost control and workshop productivity are being closely managed.

Sales for the Australian business increased to $6.5 million from $1.7m for the comparable period. The order book for the second half is acceptable.

The group's bank facilities were extended to November 30, 2009, and an offer has now been received to further extend the facilities to September 30, 2010.

The $1.5 million received from the sale of the HE Perry was used to reduce debt.

NZPA
Mon, 01 Mar 2010
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Mercer Group reduces loss as domestic demand drops
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