After tax profits up to $106m last year from $48m in 2006
Sterling Products Ltd is seeking to develop an oil crop and a facility for manufacturing edible oil locally with the assistance of a CARICOM partner.
The disclosure is contained in the 2007 report of the Chairman of the company’s Board of Directors Dr. Leslie Chin against the backdrop of figures published in the company’s 2007 annual report that reflect a good performance last year.
Statistics published in the report indicate that last year the company more than doubled its after- tax profits over 2006. According to the report last year’s post-tax profits reached $106,234,548 compared with $48,204,787 in 2006. A comparison with previous years shows that the company’s performance bettered any of the previous six years with its 2006 after tax takings represented the lowest during that six-year period.
Last year the cash cost of the company’s dividends was $50,395,356, unchanged from the previous year. However, current dividend prices maintained an upward trend after some lean periods over the past six years. Earnings per share grew, rising from $3.16 to $6.96 per share.
In his assessment of the company’s 2007 performance Chin said that Sterl-ing Products’ balance sheet remains strong and the company has the ability to meet its liabilities.
According to Chin the gains realized by the company had been secured against the backdrop of broader national economic challenges including escalating fuel prices. He added that while Sterling Products had self-generating electricity facilities to supply its production plants and had further implemented measures to reduce electricity costs, the gains were outstripped by higher fuel prices.
Meanwhile, Chin said that Sterling Products continued to pursue a path of corporate social responsibility by paying attention to enhancing the welfare of its employees as well as giving to the community in which it operates.
In his report Chin said that while increased costs for packaging and raw material had resulted in higher production costs for Sterling Products, competition for markets with other manufacturers in the region precluded the company from passing on all of its increased costs to consumers.
In his assessment of the company’s performance last year the Board Chairman said that the company had recorded increases in “other income”, increased the general level of activity of the company and reduced its operating expenses by $1.8m.
In his report Chin also disclosed that during the current year the company will be seeking to source its raw materials at better prices and will also be moving to expand the distribution network for the products that it currently produces.
