LASCELLES Chin, chairman of the Lasco affiliated companies, revealed plans to double profits in three years during an annual general meeting.

Part of that drive includes incentivising staff with stock options valued at “about $700 million”, according to Chin.

The completion and integration of the US$25 million factory, which will facilitate new lower-priced products, forms the other part of the strategy.

“We have been producing such excellent results and [the stock options is] a way to motivate them to do even better as we have plans to double our profits, so this is for motivating the staff,” said Chin at the Lasco Distributors Limited (LDL) annual general meeting held at the Terra Nova Hotel in Kingston on Monday.

The projection would double LDL profits to roughly $1 billion; LML profits to $1.2 billion and LFL profits to roughly $320 million.

Hitherto Chin remained mum on profit growth, but in 2011 revealed plans to double sales in three years for his manufacturing division — LML from $2.9 billion to some $6 billion. That was dependent on the completion of the factory then expected for mid-2012. Despite the delay — the factory completion date is now set for October — LML actually increased sales 25 per cent over two years to some $3.7 billion in 2013.

At the AGM, shareholders passed the resolution to consider authorising up to five per cent of issued ordinary shares of the company for employees. That was also passed at concurrent meetings for Lasco Financial Limited (LFL) and Lasco Manufacturing Limited (LML).

The three companies have roughly $12.4 billion in market capitalisation as at September 30. The bulk is held by LML with four billion ordinary shares at $1.50, followed by LDL, with 3.3 billion ordinary shares at $1.50, and LFL with 1.2 billion ordinary shares at $1.44.

“It’s five per cent of those three companies, which is quite a lot of money,” he said of stock options for which the pricing is yet to be decided.

“If I sell it below market then they would have to pay tax, so we have to discuss that,” said Chin. “But the intention is honourable because we want them to work hard.”

Some 50 shareholders attended the meetings, including vocal minority investors Sushil Jain, Orrette Staple and Livingston Young.

Lasco’s three publicly listed companies earned multiples for investors since listing on the Jamaica Stock Exchange Junior Market in 2010.