Pre tax profits at Clondalkin improve

THE print and packaging company, Clondalkin, has recorded a 13 per cent rise in pre tax profits in the six months to June 30th, 1996.

Figures issued yesterday show an increase in pre tax profits from £7.9 million to £8.9 million.

The rise in profits reflects 7 per cent growth in existing businesses due to both higher volumes and rising margins. The balance of the increase represents the first time contribution from the Boxes group, which was acquired in September 1995.

The board has declared a 10 per cent higher interim dividend of 2.396p per share, equivalent to 2.995p gross per share, payable on October 9th.

The group achieved growth in profits in all its geographical locations. In Britain, profits more than doubled, with the inclusion of the Boxes group and with strong organic growth achieved by the print operations, said the chairman, Mr Domhnall McCullough.

Irish operations continued to improve, with profit growth evenly spread between printing and packaging activities.

In continental Europe, strong profit improvement in the Netherlands counteracted a profit decline in Switzerland where, Mr McCullough said, market conditions remained difficult.

The strongest profit increase in the US was achieved in the packaging operations with good performances also being achieved in printing.

Interest costs increased by £400,000 reflecting the £29 million investment outlay in 1995, mainly in the second half of the year, offset by strong cash flow.

The chairman said the group was well balanced in terms of profit mix by currency. Exchange rate movements did not materially affect reported earnings per share.

The acquisition of the Van der Windt group, the largest by the company to date, was completed on July 1st and is therefore not included in the results reported. Van der Windt performed well in the first half of 1996 and in line with expectations," Mr McCullough said.