Good report by PDL

Press, 12 August 1980, Page 22

Good report by PDL

The shareholders of P:D.L. Holdings, Ltd, will find the annual report of the company pleasant reading. In his annual review, the chairman (Sir. Robertson Stewart) makes a number of points about the company which bode well for the future, and far from being disheartened by the present economy, his address is an optimistic one, contrasting .with the reports of many > other . public companies in .'New Zealand. . ; During the last financial year to March 31, P.D.L. 'Holdings introduced 41 new products on the local and export markets, and a number of decisions were made by the directors which will substantially improve the group in the new financial 'year, Sir Robertson said. I P.D.L. had bought the land and buildings belonging ! to the Zealandia Milling 1 Company, Ltd, for expansion : of its export activities. I "PDL (Asia) Sendirian I Berhad, is . now profitable, land has recouped its prior year losses. Tenders for a 75 per cent extension to' the existing . factory were approved and the building will .commence shortly,” he said. I The Middle East market had developed quickly and the subsidiary had recently sent its first container of electrical equipment to Jordan. Total sales of the subsidiary were SNZI.B million, 160 per cent of which were .exported from Malaysia. “Because of the need to constantly review our knowledge of new technology : PDL has for sometime been

seeking a suitable partner to join the group.” Sir Robertson said that George H. Scholes and Company, Ltd, of Manchester, England, which makes ■*Wylex” electrical circuit breakers and protective devices, had been chosen. “The directors have decided to. sell a portion of PDL’s • shareholding in ’ PDL (Asia) ,to George H. Scholes and 'Company, at a satisfactory price.” ' . Scholes would add its range of products to the PDL equipment for sale in South-East Asia and the Middle East. Later Scholes’ gear would- be manufactured in .New Zealand for the local arid Australian markets in conjunction with Gerard Industries Pty,..Ltd, of lia.“This . association will rapidly expand PDL; (Asia) and increase New Zealand exports.as .a,result.. It is expected ’ that ' the association will be finalised in September,” Sir. Robertson said. Having announced a manufacturing deal .with Gerard Industries earlier this year, PDL was completing an “association” with another ' Australian rhanufacturer to export completely knocked-down heaters and other products to augment the existing range of appliances.'

PDL’s attitude to exporting manufactured goods had enabled the group to develop arid expand at a time when the economy was in negative growth, Sir Robertson said. There were substantial risks in the 'South-East

'Asian venture, including developing products which ■were not suitable for New Zealand and no market testing for acceptance or performance of the products. "This is now history, and we are able to keep the organisation in New Zealand fully occupied with a contin-uing-increase in demand for our-products overseas. This has enabled us to increase techniques and efficiencies. “Consequently the New Zealand . economy, while of serious concern to industry, is not having, a major effect on the.group’s activities. . “The present economic circumstances in New Zealand, are a great challenge to industrialists, and many opportun i t i e s exist for unorthodox and progressive attitudes to emerge as .the days of. conventional thinking are. surely historic,” Sir Robertson said.

As reported, group net profit rose 54.4 per. cent to $1,353,717 on group sales 25.9 per cent higher at $21.1 million. Export sales rose 43 per cent, and sales by the Malaysian subsidiary 91.5 per cent. The tax provision rose $49,190 to . $304,050, and depreciation was $121,971 higher at $553,818. A recommended final dividend of 4c a share increases the annual rate from 7.5 c to 8c a share (16 per cent). The dividend requires $412,744 and is covered 3.3 times by the profit. ; Shareholders’ funds

$1,021,996 to $6,733,426, including steady ordinary capital, of. $2,579,650.