Sterling Products Ltd, the ice cream to margarine manufacturer, has declared improved sales for the period up to June 30 compared to the same period in 2003.
Profit before taxation was $66.9M compared to $8.7M for the equivalent period in 2003, an increase of $58.2M. The company's Chairman Dr Leslie Chin, in the interim report, said this was possible because of the overall improvements of the company in all areas. Sales increased by $70M to $638M while administrative and general expenses increased by $5.5M to $120M while other income increased by $7.3M. "We have taken positive steps to reorganise and strengthen the marketing department," said Chin. The board has declared an interim dividend of 1.00 per share. As of this Monday's trading session SPL was trading at $35 and now at $50. With dividends for the year up to $3.00 this would mean a dividend yield of 6%.
After a lacklustre performance in recent years, despite heavy investments in machinery, Sterling in January asked board directors Paul Fredericks, Charles Quintin and Clarence Hughes to resign, the same day Johnny Carpenter, the Chairman resigned because of a policy shift in the company. The reason given for the request was to cut costs.