A £4 million data storage cabinet manufacturing plant is to be built in the Dublin area by the Higgins Turnkey subsidiary of the Rubicon Group of engineering businesses. The aim is to meet the growing demand from information technology customers in the east of Ireland.
The plant will employ about 100 people and will complement Higgins Turnkey's existing metal fabrication unit in Galway. It will provide a back-up source of supply for existing customers in the west and south of Ireland. The Galway plant has recently been expanded to meet growing demand, notably from EMC Corporation in Cork and Nortel in Galway. An assembly unit to hold storage cabinets for EMC has also been established in Cork.
Capacity expansion plans at Higgins Turnkey are disclosed in Rubicon's interim results where chairman, Mr Tim Wightman, says the Irish metal fabrication business had seen "strong volumes" during the six months to November 30th.
Improved results at Higgins Turnkey contributed to 26 per cent growth in Rubicon's first half profits to £10.1 million on turnover up 12 per cent at £133.5 million. The interim dividend is up 23 per cent at 2.7p and is well covered by earnings per share, up 25 per cent at 9.0p.
Rubicon bought Higgins Engineering two years ago from Galway entrepreneur, Mr Joe Higgins, for an initial £25 million
£20 million in cash and £5 million in Rubicon shares. Since then, Mr Higgins has substantially increased his stake in Rubicon and spent £1.5 million in December to bring his stake to 5 per cent.
Mr Higgins bought those additional one million shares at 113p sterling. He is sitting on a huge paper gain of almost £700,000 after Rubicon shares soared on the London market on bumper half-year results. The shares jumped 24p to 172p sterling and are now trading not far off their one-year high of 184p sterling.
Mr Wightman said directors were confident the group would produce "a strong performance" through to the end of the financial year in May. The outlook was "particularly encouraging" for the group's electronic manufacturing services operations taking in Higgins Turnkey as well as its Magnets division, he said.
Sharp gains in first-half profits benefited from stronger operating margins and significantly reduced exceptional charges. A year ago, the group's interim figures were hit by heavy restructuring costs.
Rubicon had been regarded as something of an engineering growth stock before last year's rationalisation exercise designed to consolidate the group's position.
