Athlone firm extrudes in £45m listing

Industrial sheeting company Athlone Extrusions had the misfortune to chose a day when stock markets went into free-fall to formally announce its intent to extrude itself into the shape of a public company. Founded in 1971, this leading producer of thermoplastic sheeting has expanded rapidly over the past seven years and needs bigger outlets and appropriate funding to pursue a policy of expansion. Ownership changed hands in a management buyout in 1990 and last year the business realised pre-tax profits of just under £3 million on a £22 million turnover. Currently, over 70 per cent of output is sold on the British market with domestic sales accounting for only 6.4 per cent of output. However the company, which employs 153 people, has 400 customers in 22 countries and three years ago opened a sales office to service mainland Europe, a market which has since grown substantially.

If successful the £45 million flotation will swell the ranks of the Republic's coterie of small businessmen who have ascended to multi-millionaire status by profitably growing their business. Managing director Jimmy McGee, who holds 10 per cent of the equity, will be a major beneficiary as will family interests of the late managing director Pat Ryan, who also hold a significant equity stake. Institutional investors command around 20 per cent of the equity, senior management speak for a 10 per cent bloc of shares and employees hold around 7 per cent, through a profit-sharing scheme. While the psychological timing of the announcement was not for the superstitious, being the equivalent of walking under an unstable investment ladder, the company is hopeful that, given sound earnings fundamentals and growth potential, short-term market trends will not adversely affect investment response to the proposed flotation. Subject to shareholders' approval, the die will be cast late next month or early in December with a simultaneous listing on Dublin and London.