Float puts 48m pounds price tag on Wellington

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The Independent Online
WELLINGTON Holdings, a manufacturer of specialist plastic and rubber seals and other products, has announced a flotation price of 205p, which will capitalise the company at pounds 48.5m.

Wellington made profits of pounds 2.6m before tax in 1993, up from pounds 1.4m. Operating profits were pounds 4.2m, but the group made interest payments of pounds 1.6m.

The group was bought from Evered in 1989 by American investors in a leveraged deal, and sold on to First Britannia, a mezzanine finance fund. Gearing fell from 400 per cent in 1990 to 240 per cent before flotation, and will be 27 per cent afterwards. Just over 51 per cent of the company's shares are being placed. The management, now with 15 per cent, will hold 8.5 per cent of the enlarged capital.

The flotation will bring Wellington pounds 13.5m after expenses. Peter Chaffin, chief executive, said: 'The funds raised will remove the debt service burden and allow us to continue our investment programme.' Wellington has recently opened an office in Italy and plans to expand in the Far East.

Its seals division, with turnover of pounds 12.8m, makes components for hydraulic systems. The rubber compounding division makes solid rubber sheeting and supplies remould tyre makers. It had sales of pounds 21.7m last year. The polymer conversion division had sales of pounds 8.5m and supplies the engineering, construction and car industries.

Dealings are expected to begin on 21 March.