Foden 'tight ship'
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THE GROUP turnover of Fodens Ltd for the 28 weeks ended October 11, 1975, fell to 03,443,000 from £15,138,000 for the similar period last year.
The company, which was hauled out of cash trouble in July with a City-backed £3.12 million rights issue, reports a £797,000 loss after tax and before an extraordinary item of £42,000. For the previous 28 weeks the figure was £325,000 profit—and for the full year 1974/5 £744,696 profit.
The interim report states: "As has been previously indicated the combination of the announcement of the company's financial difficulties and the very heavy recession, which began in our particular industry last winter, had a major effect on the company's trading. The need to sell a large number of vehicles exstocks at low prices to reinforce the cash position whilst negotiations for a longer-term solution continued, seriously reduced profits but contributed to the need for maintaining the viability of the company at the time.
"Our present financial position is improved, but by no means yet satisfactory. The cost of finance represents a burden which we are dealing with as quickly as possible. The present situation demands that we run a tight ship and we are doing so."