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The Clondalkin Group has effectively doubled its profits every five years and has had four straight years in excess of 24% per annum growth.
Clondalkin Group PLC is an international producer of specialist print and packaging products with operations in Ireland, Britain, the Netherlands, Belgium, Germany, Switzerland and the United States of America. Clondalkin s shares are quoted on the Stock Exchanges in Dublin and London. The market capitalization is approximately IR(L)300 million representing a historical price earnings ratio of 15 times and a historical cash flow multiple of nine times.
Operating profits of IR(L)31 million were reported for the year ended 31 December 1997, up 23% on the prior year. Earnings per share increased by 25% to 48.56p and cash flow per share was up 28% to 81.74p. This represented the fourth consecutive year of earnings per share increases of 24% or more and compound cash flow increases in excess of 28%. The earnings growth is impressive over the longer term as well. The compound earnings growth over the last 15 years also exceeds 24%. This earnings progression places Clondalkin comfortably in the top quartile of consistent performers on the Irish Stock Exchange.
The earnings achievements are equivalent to a doubling of profits every five years or thereabouts. Norbert McDermott, recently appointed chief executive following some 18 years with the Group, most recently in a development director role, says: "Clondalkin has the resources, the opportunities and the means to maintain the strong earnings development of recent years." McDermott replaces Henry Lund, who after 20 years as chief executive, has now taken up the non-executive chairmanship of the Group.
Company history
Until 1983, Clondalkin was primarily a paper manufacturing company supplying the rather limited domestic market. The commodity nature of the product and the lack of expansion opportunities prompted diversification into the downstream converting end of the print and packaging supply chain. When Clondalkin withdrew from paper making in 1983, the converting activity sales were IR(L)40 million, with 76% of the business in Ireland and 24% in Britain.
Since then, Clondalkin has invested IR(L)274 million in developing its business base. Alongside developing its existing operations it has acquired businesses in the United States, Continental Europe and in Britain. This investment spend has been...