By Geoff Percival
IPL Plastics has ditched plans for a Dublin IPO this summer, instead opting for a sole flotation on the Toronto Stock Exchange.
The Irish company— which changed its name from One 51 late last year — yesterday reported a 36.2% rise in annual revenues to €474.4m and said progress has been made on its plans for an IPO later this year.
It confirmed Toronto as its preferred listing location but made no mention of Dublin being part of a dual IPO, which had been touted as a possibility as recently as December. Market sources suggested plans for a Dublin listing are now off the table.
Valuations for plastics companies are higher in Canada than in Ireland. Approximately 75% of IPL’s revenues are generated in North America and the company is largely owned by two Canadian fund managers.
IPL generated profits of €17.6m last year, a 9.3% annual increase, and adjusted diluted earnings per share of just over 12c, which was up by 8.8% on the previous year.
Chief executive Alan Walsh said trading in the first quarter of 2018 has been “satisfactory” despite headwinds such as declines in the value of both the US and Canadian dollars against the euro and increases in resin and transportation costs.
“Our overall 2018 results should start to see the full year earnings impact of some of the capital expenditure programmes commissioned in the latter half of 2017, coupled with a full year’s contribution from Macro [the US plastics company it bought for close to €135m last summer],” Mr Walsh said.
At the end of last year, IPL said it would pursue acquisiton opportunities in mainland Europe — after its planned IPO — in order to rebalance its geographical spread.