Ardagh Glass profits up over €50m

Pre-tax profits at the glass manufacturing business spun off by Ardagh last year increased by more than €50 million in the 12 months to the end of December 2003, the company told shareholders yesterday. Barry O'Halloran reports

Ardagh Glass Ltd (AGL), the Guernsey-registered company that operates the glass manufacturing businesses in the UK and continental Europe, increased turnover in 2003 by 48 per cent to €428.1 million, from €289 million the previous year.

Its chairman, Mr Paul Coulson, told shareholders in a letter that pre-tax profits increased to €65.6 million from €11.8 million previously.

The company reduced its debt by €25 million to €217.5 million. Stripping out exceptional items and amortisation, earnings per share (eps) grew 62 per cent to 70.9 cent.

AGL owns glass container manufacturers Rockware in the UK and Abruzzo in Italy. Dublin-listed Ardagh plc owned these companies until AGL de-merged from it in a controversial deal last year.

AGL's biggest shareholder is the Mr Coulson-controlled Yeoman. Ardagh plc shareholders were offered one AGL share for each Ardagh share they held and had the option of cashing in the AGL paper for €1.10 a-share.

Those who did not sell hold stakes in both Ardagh plc and AGL, which are now separate companies.

Many shareholders and analysts argued at the time that the offer undervalued the business. Quinn Group offered €1.50 for it while it emerged that German producer Hermann Heye would be added to AGL.

The AGL results published yesterday only cover those elements of Ardagh plc that were de-merged.

Mr Coulson's letter attributed AGL's increase in turnover and profit to the impact of both Hermann Heye and Abruzzo.

He said that the German company had effectively been under AGL control since the beginning of last year, while 2003 was the first full year to show the impact of Abruzzo, which Ardagh bought mid-way through 2002.