Home improvement and builders' merchant S.A.L.saw its total sales revenue surge to record levels in fiscal year 2005 due to increasing product demands from the construction sector.

In his annual report to shareholders, company president John R. Berg said that S.A.L. supplied the greatest ever volume of goods and materials in its history with total sales revenue reaching $26.6 million, a 19.5 percent increase over the 2004 fiscal year when sales revenue was $22.3 million.

S.A.L. posted a net operating income of $4.6 million, a 13.8 percent increase over 2004 net operating earnings of $4 million. Net income rose to $3.1 million, a 12.8 percent increase over the $2.7 million recorded in fiscal year 2004.

Mr. Berg said that the company's bottom line net income of $5.8 million includes a $2.7 million gain from the sale of various lots of land in the Southampton Industrial Park, not integral to operations.

He also announced that the company's new concrete block factory was nearing completion at Wilkinson Quarry and was on target to meet a production start-up date of next month. The purchase and installation of the physical plant for this new production outlet represented a major capital expenditure this year and in the first part of next year, he said.

"This new facility will enable the company to supply an improved quality of product with a significant increase in production capability. In this manner it will offer us the ability to meet the demands of the entire construction industry," Mr. Berg said.

All divisions of the company made significant strides in gaining market share and improving S.A.L's trading position including its introduction of Ace Paint by way of a new and improved paint shop.

The company is also expanding its contract sales department to meet demand from contractors and introduce more products.

Mr. Berg said: "Strategically, we are now in a position to build on and benefit from the structural improvements and planning processes that have been put in place during the past year. Procedures, we believe, that will allow us to be in an even better position to meet the ever-growing demands of the marketplace."

The company's board of directors took into account the company's cash flow from operations of $1.4 million and a cash balance at year-end at $ 3.2 million and have declared a final dividend for fiscal 2005 of $9.50 per common share.