One51 earnings to be impacted by decline in dollar
EGM on potential IPO to be held today
Plastics group One51 has said that it expects its full year earnings (before interest, tax and depreciation) for 2017 to be in line with market expectations.
The group's North American business has performed strongly this year, driven by continued organic growth and demand for its products in the US and Canadian markets, a statement from One51 said.
This business accounts for around 75pc of the company’s revenues.
However the group noted that its results for the second half of 2017 have been negatively impacted by the decline in the value of the Canadian and US Dollars, and by significantly increased costs following the recent hurricanes in the US.
Meanwhile One51 said that the performance of the OnePlastics business has been mixed.
Despite the ongoing political and economic uncertainties in the UK, the group performed better there than in the prior year on a constant currency basis.
However, the group said that its Irish business has been adversely impacted by reduced demand from the group’s largest customer, as well as delays in embedding new customers into the new food grade facility in Cork which was commissioned for full production in 2017.
The integration of Macro, acquired in June, was "well progressed" with trading described as "solid".
The company will today hold an extraordinary general meeting to obtain shareholder approval for a company reorganisation and possible listing in 2018.
"We are continuing to explore a possible IPO and have advanced this process in the last two months. The integration of Macro, our most recent acquisition, is progressing well and we are excited by the opportunities for continued growth in the North American rigid-plastic market with a presence on the US West Coast," Alan Walsh, CEO of One51, said.
Last month the group confirmed that it was ploughing ahead with plans for a €600m-plus stock market flotation after takeover discussions with private equity group Capvest were terminated.