Engineering group Unidare has made an encouraging start to 2000 and expects an improvement in its results later in the year, shareholders at the annual general meeting (a. g. m.) heard yesterday. The company said the integration of a US acquisition was proceeding well, and promised to reveal an Internet strategy in the months ahead.
The a. g. m. passed off peacefully, in marked contrast to the previous gathering of shareholders, an extraordinary general meeting to ratify management's decision to buy Oklahoma Rig and Supply (ORS) for up to $61 million (€60.63 million). The move was opposed by shareholders representing 48 per cent of the company, including the financier, Mr Dermot Desmond, and his partner, Mr Pierce Casey.
The atmosphere yesterday was calm, and the votes put to the shareholders were passed in a routine manner. Unidare's chief executive, Mr Paul Duggan, and another director, Mr John McGuckian, were re-elected to the board with the unanimous support of those present.
"We have had a good start, without taking into account currency translation effects which are currently in our favour," said chairman, Mr Jack Hayes. "As you know, ORS joined us last July. Excluding ORS, the sales, gross margin and operating profit of the distribution division are ahead of last year."
He said the integration of the US firm was a priority for the company and that this process was on target.
After the a. g. m., Mr Duggan said the management team had never had any doubt that the ORS acquisition was good for the company, and added that he had worked hard to communicate this to shareholders. He said the company's low share price was partly due to the lack of demand for smaller stocks, but also to sluggish profits.
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