Barlo, the engineering group, is looking for further strong growth, following a 67 per cent gain in pre-tax profit to €18 million (£14.2 million) in the year to March 31st, 1999.
It is confident of achieving "further growth", according to group chief executive, Dr Tony Mullins. Barlo continued to explore acquisition opportunities actively while proceeding with the development and ongoing organic growth of its existing business, he said.
Although the group was operating in a difficult environment, he noted it was financially strong and strategically well placed to take advantage of the consolidation which was taking place in the European sheet plastics and radiator industries.
The company planned to be a main player in plastics and radiators, he said. And he noted that there was scope to move into central Europe.
Sales growth was achieved in both its product areas and in all its geographic markets. Profit growth last year was boosted by an exceptional gain of €3 million. If this and interest costs are excluded, the operating profit showed an acceptable rise of 36 per cent to €16.8 million (£13.2 million). Sales rose 27 per cent rise in sales to €223 million (£176 million).
Earnings per share grew from 6.06 cents to 7.65 cents and total dividends have been increased by 20 per cent to 1.91 cents.
Turnover in the plastics division rose from €85.8 million to €131.6 million. This reflected a full year's contribution from Restart (Germany) and Critesa (Spain), which were acquired in November 1997. Dr Mullins said the group expected to have fully recovered its original investment in these companies this year.
Barlo said its plastics division was now the largest extruder of sheet plastics in Europe, with more than 15 per cent of that market. Sales volumes were up 60 per cent. The division benefited from stable and favourable raw material polymer prices and this trend has continued into this year. It now operates from facilities in Belgium, Germany, Spain, the Czech Republic, France and Britain.
Barlo Plastics is planning further growth in sales and profits this year. Major emphasis will continue to be placed on new product innovation.
Barlo Radiators, trading under the names of Barlo and Veha brands, and its design operations, Merriott Radiators, increased sales from €90 million to €91.7 million. Although there was a downward pressure on selling prices, this was offset by cost efficiencies.
In Ireland, the division was helped by the strong construction sector. In Britain it maintained its position in a "demanding and challenging environment". The Belgian operations had a "demanding year". The outlook for Barlo Radiators is described as "promising".
The group has welcomed the introduction of the euro. This gives it currency stability in a large proportion of its market.
