Freeze eats into PDL profit

Press, 9 July 1983, Page 23

Freeze eats into PDL profit

The sales of PDL Holdings, Ltd, in real terms — that is without any factor of price increase - increased 17.8 per cent to 544,375,236 in the year ended March 31, the chairman (Sir Robertson Stewart) announced. Exports rose 4.4 per cent to $6,798,772.

The pretax profit, however, because of the erosion cost increases could not be passed on, reduced from $4,964,282 to $3,773,903; it included the share of the associate company’s profit contribution (PDL-Wylex Sdn Bhd) of $198,086. Taxation reduced from $1,261,847 to $503,639. Extraordinary items totalled $113,415 and therefore there was a con-

solidated profit after tax including those extraordinary items of $3,383,679 compared with $3,956,297 last year, a reduction of 14.5 per cent.

On July 1 the PDL group took over a major plastics and sales organisation in Melbourne, Australia, previously known as Goldair Electrical Appliances Pty, Ltd, and a new company has been formed — PDL Industries Aust. Pty, Ltd, to take over this operation.

Since April 1 sales have increased both locally and overseas compared with the last six months of the previous financial year, when demand was down to a

level not previously experienced.

Sir Robertson says that “this exciting enterprise, set up to take advantage of CER, will add substantial exports to the PDL Group, as well as providing an offshore profit on its trading activities in Australia.

A number of new products will be launched during the next six months, most of them for the Australian market.

The “Goldair” range of electric fan heaters, haircare, and related products are market leaders in Australia and New Zealand, and exports of these products from New Zealand will in-

crease now that the group has acquired the manufacturing and merchandising rights in these and other countries.

The free exchange of technology and tooling, in association with a major German company, will increase the ability of the group to quickly add new products to an already impressive range of goods. Mr J. B. Vale, who is managing director of PDL International, Ltd, (previously general manager of PDL-Wylex Sdn Bhd) has been appointed managing director of this new company. He will take up his duties on August 1.

“The Jordan joint venture is proceeding and should be concluded within a few months. “Substantial orders have been obtained from Sri Lanka and from the United Kingdom for our range of British Standard electrical accessories, and we are looking forward to a progressive period,” Sir Robertson says.

In March one-for-five cash issue, at 275 c each, was fully subscribed and raised $2,925,615. The directors recommend a final dividend of 7.5 c a share (15 per cent) tax-free — subject to the necessary consents. It will be paid on August 31.