"In keeping with the trend that has been exhibited over the past few years, it is my pleasant duty to report that your company has had yet another successful year. This was achieved despite the lull in trade that was experienced at the end of the second quarter and throughout the third quarter. Indeed the year ended with a buoyant construction sector that enabled our turnover at $16.98 million to finish only 4.2% below last year.
In the operating divisions, improved cost control measures allowed for a higher gross margin that is reflected in the increase of the net operating income of $1.689 million, a gain on fiscal 2000 of 1.7%. The gain realized by the sale of a land asset in the first half of the year increased the final net income to a record figure of $1.956 million. This positive position shows that earnings per share were improved by 20% to $7.04, and net assets per share improved by 18.4% to $43.98.
As indicated in the half-year report, the company completed the purchase of the outstanding 129,137 preference shares at the par value of $10.00 per share. The cost of this resulted in a reduced cash position at the end of the year of $1.536 million. This position is considered healthy and one that allowed your directors to declare a second dividend for fiscal 2001 at a value of $1.00 per common share. This brings the total dividend for this financial year to a value of $1.70 per common share.
In preparation for the continuance of our business and to better service the anticipated marketplace, your directors have approved capital expenditure to increase our Readymix Concrete fleet, and to improve the concrete production facilities. In the past few months, planning permission has been given to allow a replacement Concrete Block factory. This ongoing project will be further designed and outsourced in the coming months.
The retail division has continued to demonstrate sales growth, and in keeping with this success the structure of the management team has been expanded and re-organised. It is our intention in fiscal 2002 to review and improve facilities at both the shops and the LBM Yards. After yet another successful year the contracts sales department has been expanded to allow greater market penetration, and offer a better service to the existing customers.
In closing, a special thank you is extended to our valuable customers whom we have been privileged to serve throughout the many years. I would also take this opportunity to extend a thank you to an enthusiastic and industrious staff, who have given diligent service throughout the past year."
John R. Berg
President