Barlo, the radiator and plastics firm, has announced a 3.6 per cent increase in pre-tax profit to €9.4 million (£7.4 million) from €9.1 million in the six months ended September 30th 2000. A "strong performance" will be recorded in the full year "with all divisions contributing to the result", Barlo said.
In the longer term it sees opportunities generated by business consolidation in Europe. Growth will come from core activities and acquisitions. The radiator division is projected to continue with its growth and "make a substantial contribution to group profit". Barlo said it was now the market leader in the European sheet plastic sector and saw "excellent further opportunities to expand both by way of acquisition and organic growth over coming years".
Sales on continuing operations grew by 23 per cent to €123 million while adjusted earnings per share rose by 7 per cent to 5.11 cents. Shareholders will benefit with an 11 per cent increase in the interim dividend to 1 cent per share. Reflecting a capital expenditure programme, borrowings rose to €32.4 million from €13.9 million which pushed the gearing up to 28 per cent from 15 per cent. Nevertheless, it remains in a strong financial position.
A breakdown of sales shows growth in both business areas in the first half but most growth came from plastics which raised sales to €79.4 million from €58.7 million. The division had ridden out an upward polymer price cycle and substantially increased turnover and total contribution, Barlo said. Radiators managed a marginal growth to €44 million from €42.0 million. The performance of this division was affected by the introduction of a panel radiator range from its Belgian factory. "Substantial benefits" are expected to start flowing in the second half and over the coming years, according to the interim statement.
Commenting on the latest results, Barlo's chief executive, Dr Tony Mullins, said the profits were ahead of plan "with very satisfactory sales and profits increases".
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