ILP Group, an Irish manufacturer of packaging for the computer and electronics industry, is to seek a share quotation on the London Stock Exchange through a placing of shares later this month. It will value the company, set up in 1974, at around £16 million.
ILP will not be looking for a quotation on the Irish exchange because it feels it will receive more favourable treatment from British institutions, according to a spokesman. Irish institutions, he stressed, do not favour small Irish flotations.
The majority of the company, which employs almost 200 people - 140 in Ireland - is owned by company founder and managing director Mr Paul Burke. Two other directors, Mr Paul McLaughlin, sales director, and Mr Kevin Hogan, finance director, control the remaining minority shareholding.
The placing involves some existing shares held by executive directors, who will net around £1.5 million between them, and new shares which will raise some £4.5 million. The purpose of the flotation, ILP said, is to allow two directors Mr Burke and Mr McLoughlin - to realise part of their investment and provide the company with funds to help finance the expansion required to satisfy the rapid growth in demand. After the issue, Mr Burke will end up with about 50 per cent of the enlarged group.
Mr John Bourke, chairman of Irish Permanent, is a non executive director of ILP. The other non executive director is Mr Jasper Allen, director of English Trust Company, which is arranging the placing. The stockbroking firm to the issue is Teather & Greenwood.
ILP started life as a manufacturer of labels and a distributor of general packaging but shifted direction in 1983 to serve the specific demands of the computer and electronics industries. Its core business is the design and manufacture of custom made protective packaging usually corrugated cartons. It also manufactures anti static bags. Around 90 per cent of its sales are now directed to its customers in the computer and electronics companies.
Its main factories are based in Bray, Clonee and Limerick. The company plans to establish a new plant at Leixlip, Co Kildare. Some of the new funds will go on this plant which will significantly increase production and storage capacity.
The group expanded outside the country in the past year through the establishment of two new joint ventures, in Malaysia and Germany. ILP has a one third interest in a Malaysian plant built to serve the needs of Dell Computers, its largest customer. Austin Foam, a foam manufacturer, and Phoenix Base are the other joint partners. In Ireland, ILP has established a company manufacturing polypropylene packaging, in a 50/50 joint venture with John Waddington.
ILP has been expanding at a very fast pace, particularly in recent years. Sales rose from £3.1 million in 1993 to £5.4 million in 1994 and to £12.4 million in 1995. Net profit grew faster from £94,000 to £202,000 and to £1.05 million over the same period.
