Monday 22 January 2018

PCH considers Hong Kong listing as turnover to double

John Mulligan

A STOCK market listing in Hong Kong is one of the options being mulled over by Corkman Liam Casey for his China-based outsourcing business, as turnover at the group is forecast to more than double this year to $380m (€298m).

Mr Casey declined yesterday to say how much net profit PCH International might post in the current financial year. However, it's believed that based on a 2pc to 3pc net margin, it's likely that PCH could post a profit of around $13m.

PCH designs and ships products for a range of well-known international consumer electronic firms, such as Apple and Dell, from its three factories in China. It contracts out manufacturing of those products to local Chinese partners, and clients also include medical device makers.

Mr Casey said a stock market listing is just one of the options that could be pursued for the business to finance further expansion, and that securing additional private-equity funds could also be considered.

Mr Casey, who founded PCH in 1996, sold a combined 47pc stake in the business in 2008 for $21m to three Silicon Valley venture capital companies.

"We wouldn't be opposed to another round of funding if we have to. We looking at all avenues though," said Mr Casey yesterday. "The opportunity is big for us. In the space we operate in, it's a land grab."

Mr Casey added that if it pursues a public listing, the Hong Kong market would make "most sense" for the firm, as its business model is more fully understood within the local geography. One of PCH's factories is close to Hong Kong, in Shenzhen, on mainland China.

"A listing would be a very good enabler for us in terms of profile and improving access to cash," he said.

Turnover at PCH grew nearly 34pc last year to $152.6m, while the company posted a profit after tax of $361,000.

That compared to a loss of $4.7m the previous year as the company increased its capital spending.

Irish Independent

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