Feltex BOD confirms that no final dividend will be payable
28 Jul '05
5 min read
As previously announced, there is an one-off restructuring cost for the four Senior Executives of $1.2m ($840,000 after tax), mainly comprising contractual employment entitlements, that will be provided for in the 2005 financial year result. The cost associated with the departure of the CEO, Sam Magill will be provided for in the audited results for the 2005 financial year. The announcement of the audited result on 24 August will include a full review and analysis of the financial performance of the company, quantifying one-off costs incurred during the year.
The operating conditions that were experienced in the 4th quarter of lower sales, pressure from imports and tighter margins are expected to continue into the first quarter of the 2006 financial year. The company is operating profitably under these conditions, but at a level that is unsatisfactory to the Board. The review of operations will generate savings that will improve profitability for the 2006 year.
Operational review The Board is making 42 salaried positions redundant as part of the first phase of the operational review, in addition to the previously announced departure of four Senior Executives. The annualised savings for the 46 positions will be $4m before tax and for the 2006 year the savings will be approximately $3.2m before tax. The one-off redundancy costs, including the $1.2m restructuring cost for the earlier announced four Executives, total $3.4m before tax.
A full review of the manufacturing operations is underway, assisted by external advisors. Initial decisions on the review of manufacturing operations will be implemented this year and deliver savings in this financial year.
marketing@alchempro.com
