HomeBusiness DigestDavid Whitehead defies shortages

David Whitehead defies shortages

Staff Writer

DAVID Whitehead Textiles Ltd says while volumes decreased by about 149% for the six months ended March 31 2003 turnover however increased for the said period.

=”Verdana, Arial, Helvetica, sans-serif”>The company yesterday said turnover had increased from $1,6 billion to $4,1 billion.

“However, the current economic climate characterised by shortages of key inputs like coal, electricity and foreign currency in general, led to a decrease in volumes for the said period,” David Whitehead said.

“This led to significantly increased downtime over this period. Encouraging was the fact that demand for our products remained overwhelming, and to this end the board is still exploring ways of replacing bottleneck equipment.”

The company said exports had been increased to combat the foreign currency shortages and enable direct importation of key inputs.

Operating profit before taxation increased by 474% from $45 million last year to $259 million this year.

Basic earnings per share increased by 301%.

Cash and cash equivalents declined from $227 million at year ended September 30 2002 to $109 million at half-year ended March 31 2003.

“This is in line with management strategy to increase stocks of raw materials, where possible. The new fabric printing machine was commissioned in November 2002 to increase production of printed fabrics,” the company said.

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