Cost cuts to drive W&H gains

By DANIEL RIORDAN

Wilson & Horton Holdings (the Irish-owned publisher of the Herald) is hoping for an improved performance based on cost containment rather than revenue growth.

The company, which also publishes provincial newspapers, the Listener and the Woman's Weekly, yesterday posted a bottom-line profit for the six months to June of $6.3 million, compared with a loss of $9.1 million for the same period last year.

The main reason for the turnaround was a foreign-exchange gain of $1.9 million compared with a forex loss of $30.1 million, after the company finished converting its foreign currency borrowings into NZ dollar- denominated debt.

Operating profit before tax and unusual items fell from $18.6 million to $9.9 million after the company took a $12.5 million hit on higher interest charges associated with moving debt back to NZ. Revenue was up 4 per cent to $236.7 million.

Chairman John Maasland said he expected the full-year results to be better than last year's - at operating and bottom-line levels - but largely through cost reductions rather than revenue gains.

In the year to December 2000, the company lost $2.4 million but tallied an operating profit of $32.9 million.

"We're not buoyant about the outlook, but we think that with a reasonable economy and cost-control measures ... we'll do better," said chief executive John Sanders.

He said most cost controls were at "micro-management" level, although longer-term measures included printing the Whangarei-based Northern Advocate at the company's Ellerslie plant from the end of this year.