PDL still growing

Press, 19 August 1982, Page 30

PDL still growing

PDL Holdings, Ltd, the Christchurch-based electrical and plastics group, expected another record year, said the chairman (Sir' Robertson Stewart) at the annual meeting yesterday.

In the first four months of the present financial year, total sales were up 41.6 per cent, of which export sales had increased 13.2 per cent. Export sales slowed from time to time, but by the end of the year they were expected to show a greater increase. Sir Robertson said.

"I believe we will again have a record year.”

Because of the small community in New Zealand, the best method of continuing growth w r as by acquisition.

At the moment the takeover or absorption of four companies was being considered by PDL, he said. On May 1, Addax Plastic Holdings. Ltd, of Auckland, was bought. The company was immediately profitable, and was expanding rapidly. "Having a manufacturing presence in Auckland is most valuable and is providing an integrated structure producing plastic mouldings for a large number of clients.

“The additional toolroom at Rosebank Plastics, Ltd (part of Addax Plastic, is

being loaded with new dies and mouldings for PDL’s electrical products programme,” he said. Addax Plastic, comprising six companies, would be consolidated as Livermore Plastics. Ltd, and Nuclear Printing, Ltd, and would separate from Rosebank Plastics which is the main manufacturing unit. The erection of an additional factory on freehold land at the rear of Rosebank Plastics, Henderson, for expansion, was also being investigated. Of directors' fees, Sir •Robertson said it was unfortunate that because of the present freeze regulations, it was not possible to ask shareholders to increase the fees to reward the directors adequately. “It was my intention to recommend to the annual meeting that directors’ fees equal to 1 per cent of the group tax-paid profit be approved, and therefore the results of the group, both now and in years to come, would reflect the performance of the directors.

“Good companies deserve good directors, and bad companies have them,” he said. Sir Robertson said that to his knowledge, this manner of paying directors’ fees had

not been suggested or done in New Zealand before.

In reply to a shareholders’ question, he said that if PDL made a loss then the directors would get nothing. Mr D. Sollitt, the deputy chairman and joint managing director for New Zealand operations, said that a 42 per cent increase in total sales had been set in the present financial year, compared with last year. Referring to closer economic relations (CER) with Australia,. Mr Sollitt said that PDL should become a “lean and hungry” company by winding down stock and overheads, so that when CER came the group would be cost efficient.

PDL was’ also equipping with the latest in European injection-moulding machines, which would be placed throughout the whole group.

Addax Plastics was expected to contribute a gross profit of $500,000 to the

group this financial year, he said.

Mr J. B. 'Vale, the joint managing director for overseas operations, said that PDL expected to increase its export sales 30 per cent in this financial year, of which 70 per cent would be to Australia.