Jarvis Porter doubles profits

Click to follow
The Independent Online
JARVIS Porter, the labels and beer mats printer, more than doubled pre-tax profits from pounds 2.2m to pounds 4.8m in the year to 28 February.

The result was helped by two acquisitions from James Wilkes, the Sheffield engineer, and the company said yesterday that it would continue an aggressive acquisition policy.

Jarvis paid pounds 12m for Quarmby and Waterlomat, Wilkes's beer mats businesses, about halfway through the financial year. They accounted for about four-fifths of the growth in turnover last year and two-thirds of the profits rise.

Two further purchases have been made since the year-end. Jarvis paid pounds 6.1m for Dolphin of Lewes, East Sussex, and Irwin Packaging of Cardiff. Both are self-adhesive label printers.

Earnings per share for 1992 jumped 70 per cent to 11.4p and the dividend was lifted to 4.7p from 4.4p.

Jarvis shares closed yesterday at 240p, up 5p. The shares have tripled in the past three years.

Tim Rothwell, an analyst with BZW, lifted his profits forecast for the current year by pounds 900,000 to pounds 6.7m. Yesterday's closing share price is 17 times Mr Rothwell's new earnings- per-share prediction of 14.1p.

Much of the growth has been masterminded by Richard Brewster, the chief executive who moved from David Smith, the paper and packaging group, in April 1991.

Mr Brewster said immediate acquisitions would be in the labels business but he did not rule out purchases in related packaging areas. The company is also keen to increase its exposure to European markets. Paul Jarvis, chairman, said: 'We believe that our expansion, both organic and by way of acquisition will continue.'