Feltex BOD confirms that no final dividend will be payable
28 Jul '05
5 min read
Inventory Levels With the slowdown in sales as a result of market conditions, particularly in Australia, inventory levels have increased over the last five months. This is being addressed by reducing production levels. Consultation is underway with staff and unions at North Island yarn and carpet plants to temporarily reduce the working week.
The cooperation of the unions and staff in working towards the objective of reducing production to bring inventory levels back in line with demand is appreciated. Further details on the plan to lower inventory levels and decrease working capital levels will be provided with the audited annual result on 24 August.
New CEO The Board is working with an international search firm and it remains the Board's objective that an announcement on the new CEO will be made by the Annual Shareholders Meeting in December. Godfrey Hirst's request for discussions on a possible merger In late June, the privately owned family company, Godfrey Hirst Australia Pty Ltd acquired 5.8 percent of the company's shares and proposed to Feltex that the two companies consider merger discussions.
Following an initial meeting with Godfrey Hirst, the Board has resolved to request Godfrey Hirst to provide to Feltex financial information that is comparable to the publicly available information on Feltex. The Board is looking constructively at the request for merger discussions and with a clear understanding that any merger must be fair and reasonable to Feltex shareholders.
marketing@alchempro.com
