KEY POINTS:
The high New Zealand dollar is hurting textile design company Pod, which is speeding up moves to take its manufacturing base offshore.
The company today reported a deficit after taxation for the six months to December 31 of $1.17 million.
Excluding foreign exchange losses of $1.04 million, the result would have been a loss of $138,000, the company said.
The result for the latest half year compared with a net surplus of $1.32 million for the comparative six months a year earlier, which included a non-recurring net after tax gain of $1.1 million on the sale of a Brisbane property.
Chairman George Gould said garment maker Michele Ann performed better during the latest half year and Mollers Homewares made a continued steady contribution, both producing solid profits and cashflows.
But the group was suffering from poor financial performance from merino exporter Designer Textiles International.
"Despite our merino business exporting record volumes, the reality is that we are finding it difficult to profitably manufacture and export merino fabric and garments when the NZD is at 70cents USD and the competition comes from lower cost manufacturers overseas," Mr Gould said.
Designer Textiles International already complemented the local manufacture of fabric with garments contract manufactured offshore.
"We shall now be fast tracking existing initiatives to move our manufacturing base offshore," he said.
No dividend has been declared.
Shares in Pod were down 6c to 34c in mid-afternoon trade today.
- NZPA
