B
TEXTILES BRIEF
PROFILE OF MISSIONERS' COMPANIES
BRIEF 3 PART III
CARRINGTON VIYELLA (CV) (MR REGAN)
1
CV are the fourth largest UK textiles group in terms of turnove (£313m in 1979). The company's range of interests spread over the whole of the UK textiles and clothing industry -spinning, weaving, knitting, dyeing, printing, finishing, carpets, household textiles, and garments. CV made pre-tax profits of £16.6m against £21m in 1978. Performance is suffering from continuing pressure from imports from low-cost countries, growing unfair competition from the USA, and domestic economic conditions including rises in VAT and interest rates CV, as a widely based company, reflects fairly accurately the state of the industry as a whole.
2
The Group employs about 24,000 workers in the UK, after a fall of about 1, 100 in 1979 and further subsequent reduction. Operations recently closed have been predominantly ones in the carpets, weaving and jacquard fabric areas. ICI, who have a 49% holding in CV, have inspired a fundamental review of the company's involvement in basic textile areas heavily penetrated by imports. This study began in February and is nearing completion. The company's future probably depends on its agility in dealing with weaknesses as they arise, and in making the most of its stronger elements, eg Dorma household textiles, shirts with respected brand names (Van Heusen, Louis Philipp
3
CV's sales of yarn and woven and knitted fabrics totalled about
£120m and household textiles £68m in 1979. In fabrics, plans for
rationalisation have had to be adapted to more difficult market
conditions, although in the knitted fabric division CV continue to lea
the market in automotive and specialised products and have introduced new ranges of suede and sports apparel. Demand remains fairly high for household textiles and exports have held up better than elsewhere.
4
The new Chairman and chief executive Mr Derrick Hornby took over on 21 July from Mr Len Regan, who became President of the company and remains President of the British Textile Confederation until his
retirement in April 1981.