25 September 1997: The UK group Brunner Mond Plc, Britain“s only soda ash producer, reported significant improvements in sales and profits for the year ended 30 June 1997 despite challenging market …
25 September 1997: The UK group Brunner Mond Plc, Britain“s only soda ash producer, reported significant improvements in sales and profits for the year ended 30 June 1997 despite challenging market conditions and adverse currency movements. Its turnover amounted to UK145.7 million, a 5% increase on the UK138.8 million recorded in 1996. Operating profit rose by 7%, from UK19.4 million in 1996 to UK20.7 million this year, and earnings per share were 18.2p, 11% more than the 16.4p of 1996. The company saw a strong performance from its UK operations. There was also some recovery in prices. However, because of severe adverse weather resulting in the worst floods to hit Kenya for 30 years, production was hampered at the company“s operations in Lake Magadi. The strong Kenyan shilling did not help operations there either. However, the firm saw good progress with a capital investment programme, which it hopes will provide it with a solid platform for future growth and development. The Chairman of the company, Mr. Eric Kinder, said, “The alkaline chemical industry, which operates on a worldwide basis, is highly competitive. Nevertheless, within this environment Brunner Mond has consistently performed well, establishing a strong position and reputation in each of its main markets. The current year has started slowly, influenced by strong sterling and economic uncertainty in South East Asia. Though it will be a challenging year, the Directors are confident that the underlying strength of the business will be further enhanced by the Group“s skilled and experienced management and workforce.” The Chairman went on to say that this year“s most notable event was the Company“s successful listing on the London Stock Exchange. This was a historic occasion as it represented Brunner Mond“s return to the Stock Exchange after an absence of 70 years following its merger to form Imperial Chemical Industries, and 115 years after it was first listed on the Stock Exchange. The group also recently said that it intends to take advantage of restructuring in the European chemical industry through acquisitions and joint ventures. “We will seek to add to our organic growth with acquisitions or strategic alliances, which will extend our geographic presence or allow us to build on areas of competence in chemical manufacturing skills, marketing of bulk chemicals and restructuring of large chemical businesses,” said Mr. David Wertheim, CEO of Brunner Mond. The Board is recommending a final dividend of 5.8p per share which, together with the interim dividend of 2.9p per share, totals 8.7p per share for the year. The final dividend will be paid on 10 November 1997 to shareholders on the register at the close of business on 10 October 1997.