Punch Industries shareholders got €10m dividend

SHAREHOLDERS IN homecare products manufacturer Punch Industries were paid a €10 million dividend last year, according to the company’s figures.

Axa Private Equity controls Punch Industries’ parent group, Spotlesss, which owns the Cork-based business through a local subsidiary and a holding company, Glanmire Holdings.

Punch Industries, which manufactures shoe polish, additives for controlling colour contamination in domestic washing machines and related products, had sales of €53 million last year, according to accounts just filed with the Companies’ Registration Office.

Its turnover was close to 12 per cent up on the €48.4 million it recorded in 2007.

Pre-tax profits increased 35 per cent to €7.6 million in 2008 from €5.6 million the previous year.

After tax, Punch had profits of €7 million. The €10 million dividend paid left it with a retained loss for the year of €3 million.

The company also recorded a €1 million loss on its pension fund. The retained loss and pension shortfall contributed to cutting shareholders’ funds by €4 million to €8.5 million on the balance sheet date of December 31st, 2008.

Punch Industries became part of the Spotless group in 2006 when the Punch family sold the business to an investment vehicle that included Axa Private Equity, a division of French insurance giant Axa. Spotless is a collection of domestic-care product manufacturers with strong local brands in Ireland, Britain and Europe which was effectively built up by Axa Private Equity and its investment partners.

Last last year, Axa said it was seeking to sell Spotless, but subsequently boosted its holding in the group by buying up most of the stake owned by one the family behind its Italian brands. Axa holds 65.6 per cent of the group, local management of its businesses controls 16 per cent, the Gualandi family 12.6 per cent and European Capital has the remaining 5.8 per cent.

In 2007, Paris-based Spotless’ accounts valued Punch at €50.7 million. The overall price tag placed on the group was €700 million last year.

Its other brands include detergents Vim and Vigor. The group had its genesis in Axa’s purchase of Eau Écarlate, a French fabric-care brand, from Natexis and Barclays Private Equity in 2005 for €150 million. It followed this with Punch Industries, the household-products unit of Guaber in Italy (with which Punch has a distribution agreement), Dylon International in Britain and Eparcyl in France.

The group employs 350 people, 100 of them in Ireland.