U.P.P. worried over rising costs

Press, 6 September 1980, Page 19

U.P.P. worried over rising costs

United Publishing and. Printing Co, Ltd, chairman l Mr R. F, Smith sees no chance of any abatement of I rising costs. In the annual report to’ shareholders for the' year toi March 31, 1980, Mr Smith notes that “trading is ahead of last year but the coming months show no sign of any levelling off in the escalation of costs, both in wages and materials.” But he believes new technology may hold the key. “To maintain our present profitability the fullest use must be made of new technology and your company is in the fortunate position of

having the necessary funds available to take advantage; of any new developments that' may arise to increase productivity.” The directors “have already authorised capital expenditure in excess of $500,000 for the coming year,” Mr Smith says. In last year’s annual report, Mr Smith said capital expenditure for the period to March 31, 1980, of. $200,000 had been approved, but “later in the year your directors will be asked to consider proposals involving at least a further $700,000.”

However, in neither case has Mr Smith revealed what the money is being spent on. As reported, the company’s profit for the year of $1,065,491 broke through the I $1 million barrier for the first time. Sales increased 15.5 per ; cent to produce the 9.3 per cent profit increase, and Mr Smith says the sales increase was due to “both i higher volume and price I adjustment.” I “All subsidiaries performed I according to their budgets ;and the progressive modernj isation programme which has ■ been carried out for the past i decade has enabled our group ’to maintain a competitive edge in ■ its various printing i and publishing activities.”