One51 earnings increase by 31% as Board agrees to recommence exploring IPO
Earnings at One Fifty One plc, a leading rigid-plastic packaging company, increased by 31.1% to €32.4 million in the six months ended 30 June 2017, on revenue which grew by 32.4% to €225.8 million when compared with the six month period to 30 June 2016. The increased revenues and earnings were primarily driven by strong organic growth in IPL, the Group’s North-American plastics division and the six month contribution from Encore Industries, which was acquired in November 2016.
The Board of One51 has agreed to recommence exploring a possible IPO and stock-market listing for the Group in the next 12 to 18 months, subject to market conditions. This strategy has the full support of the Group’s largest shareholder, Caisse de dépôt et placement du Québec. A stock-market listing would provide shareholders with a liquid market for their shares and would facilitate raising further equity if necessary to support future growth.
Group profit for the six-month period before tax, exceptional items, discontinued operations and the Group’s share of profits from its equity-accounted investees, amounted to €14.8 million, a 36.5% increase year on year.
In June 2017, the Group acquired Macro Plastics Inc., which produces rigid-plastic bulk bins and bulk packaging solutions to the North-American agricultural and automotive sectors. Macro adds three new US manufacturing locations in Kentucky, Washington State, and California to One51’s portfolio.
During the six-month period to June 2017, One51 continued to invest heavily in our North-American operations to respond to strong organic growth and to provide the Group with enhanced ability and capacity to service an expanding business and customer base.
One51 disposed of its UK and Irish Specialist Environmental Services businesses in April 2017. These sales completed the divestment process, which allows One51 to focus on the development and growth of its core plastics operations, through both organic and acquisition-led initiatives.
Alan Walsh, One51’s Group Chief Executive said: “Given the significant progress in the business, the Board has recommenced exploring a possible IPO. As well as delivering very strong results for the first half of the year we have successfully integrated the Encore acquisition into our IPL division. The IPL business in both the US and Canadian markets continues to perform ahead of expectations and in Europe UK earnings were in line with expectations despite being adversely affected by the fall in the value of sterling. We are excited by the prospects for the Group following the recent acquisition of Macro, which provides three new locations as well as access to the US West Coast. The Group is currently investing heavily in expanding its production facilities in both the US and Canada in response to the very strong organic growth in those locations.
“Trading for second half of the year has started satisfactorily and we remain confident of delivering full year results in line with market forecasts.”
