Graphics supplier in £8.5m flotation

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The Independent Online
Photobition, a supplier of graphics to the display industries, is to raise £8.5m through a float on the London Stock Exchange next week. The share price of 150p values the company at £15.5m.

The company is selling 55 per cent of its expanded share capital. The shares will be placed with institutional investors.

Of the money raised, £2.9m will be new money for the company, while the remaining £5.6m will go to existing shareholders.

Founded 27 years ago as a photographic laboratory serving the exhibition industry, the company now provides a wide range of services to display industries. Its materials are used in exhibitions, advertising, retailing and museums.

Turnover for the seven months to the end of October was £6.6m. Pre-tax operating profits were £1m. The company is predicting pre-tax profits of £1.8m for the year to March 1995.

Photobition plans to use the money to finance acquisitions in display-related industries. It will also create a market for the company's shares. The extra liquidity will benefit employee shareholders, who will be able to sell their shares more easily.

The company also plans to expand geographically in the UK. It says it is well placed to take advantage of increasing marketing expenditure by businesses as the economy expands.

The company forecasts a net dividend of 3.6p for the year to March. It says that, had it been listed for the full year, it would have paid a dividend of 6p.

Eddie Marchbanks, chairman and chief executive said: "Flotation gives us the financial strength to grow and develop new services for our client base."

Shares will commence trading on 17 February.