Mackie promises return to profit by year-end

Mackie International, the Northern Ireland textile engineering firm, will return to profitability by the end of the year, its chief executive, Mr Sul Sahota has said. The company has announced a major restructuring, which will include 62 redundancies.

Mackie has reorganised its operations and will merge six formerly separate divisions into one single operation. All manufacturing and administration is now concentrated on one site at its Springvale factory in Belfast. Mr Sahota said last night that integrating the businesses into one large manufacturing company was the most efficient way to utilise its assets.

He said certain product lines had been discontinued in specialist areas which were geared towards manufacturing and which had no prospects. Mr Sahota said the company's core products over the next few years would be machine casting and component services to other companies as well as machinery building, but not exclusively textile machinery.

Mackie bought Rice & Co, a British company, whose main business is machine casting, last year for £1.1 million sterling. Its operations are being transferred to Belfast. Mr Sahota said the Rice order book was very important for Mackie.

Last October, Mackie reported a pre-tax loss for the six months to the end of June of £3.7 million sterling. The company said yesterday that trading in the second half of 1997 was similar to the first half.

It said the new foundry had experienced low levels of production in November and December.

However, it maintained that the restructuring would significantly strengthen the group's operating performance.

Last April, Mackie shares were suspended after a warning that its 1996 results, which recorded a £440,000 loss, would have to be restated. In June, the results were restated showing a loss of £7.2 million. The company then held a £5.2 million rights issue, at a fraction of its last traded price, replaced its lawyers, stockbrokers and financial advisers and announced a major restructuring.

Mr Sahota said last night that no legal actions were pending against any of its former advisers.

However, when new appointments were made last year, the chairman, Mr Pat Dougan and the finance director, Mr Sean Harte left the group. It is understood that Mr Dougan is claiming compensation of £421,000 and Mr Harte is claiming compensation of £182,000. Mr Sahota said the company would be vigorously defending both claims.