Gestetner Holdings Plc saw its share price drop 4p to 1.12p with the announcement of year-end figures. Finance Director Stephen King remained evasive about the fall in share price saying the results were largely what the market had expected. The London-based office automation and photographics company reported pro forma pre-tax profits of ú16.1m against a loss last time of ú31.1m on turnover that nudged up 1% at ú1.008.4m. Proforma figures reflect a change in reporting period to December 31. Turnover for office automation products rose 4% to ú821m, 75% of which came from the sale of photocopiers. Operating profit for this sector was up 10% to ú32.5m. UK and French markets remained flat but elsewhere in Europe trading margins improved to 4.7% from 3.9%. US and Canadian markets were described as dissappointing, with turnover in the US and Canada showing only a modest growth. In Gestetner’s two largest Latin markets, Argentina and Mexico sales volumes fell. King attributes declining sales in Mexico to the recognised uncertainity in Latin American economies and Argentina’s poor performance to increasing competition within this market which has put margins under pressure. However, a turnaround from loss to profit was achieved in Australia. Th e company’s photographic business contributed ú188m to overall turnover. In Australasia, where the company has distribution rights for Fuji Co Ltd film, operating profit was ú6.5m from ú5.3m last time following the acquisition of the outstanding 51% shareholdings in the Rabbit Photo retail group. In Europe and North America, Gestetner’s business comes from the sale of Vivitar and Hanimex cameras and accessories. Trading profits in this market advanced from ú1.7m to ú3.2m. The board has recommended a dividend per share of 1.8p. On the future, King remained subdued saying it will continue to make steady progress but progress is not likely to be spectacular.
