Lusteroid expands to meet demand

Press, 13 July 1976, Page 23

Lusteroid expands to meet demand

PA Auckland Because of the high sales demand at the end of the year to March 31, Lusteroid Holdings (N.Z.) Ltd, Auckland industrial and automotive paint maker, is to install more plant and machinery, says the chairman (Mr J. C. Fletcher) in his annual review. The new machinery would enable the company to meet peaks in future demand, and it should be installed in the three months to September 30 of the current year, he says.

The accounts also revealed that the company had gained approval under the Government regulations to increase directors’ fees. Shareholders would be asked to support an increase in fees from $5OOO to $6250 a year. As announced, group net profit rose $135,740 to $193,000 in the year to March 31. The annual dividend rate has been held at 16c a share (16 per cent) with a final payment of 9c a share (9 per cent). During the year the group's sales increased 15 per cent to almost $2.5m.

Recent rises in freight costs and. indications of higher raw material prices were causing concern, and steps were being taken to arrest the effects of these items, Mr Fletcher says.

The paint company in the group has concluded an agreement with the Ford Motor Company to manufacture, under licence, special enamel for local car assembly plants. This agreement was expected to make valuable contribution to sales in the current and future years.

The profit was after providing $27,148 more for tax at $40,540.

The result improved the return on capital from 20.5 per cent to 57.9 per cent, and that on average shareholders’ fund from 7.9 per cent to 15.5. per cent.

Shareholders’ funds rose from $1,114,828 to $1,376,393, and term liabilities from $110,216 to $345,199.