Newcourt makes solid debut on stock markets

NEWCOURT made a solid debut on the AIM and IEX markets yesterday as shares in Dublin traded at €0.86 per share.

Shares were issued at 70c each, and the offer was three times over-subscribed.

Newcourt operates in the out-sourced services sector in Ireland, initially through Federal Group in security services and Sigmar Group in recruitment and staffing services.

The group has a history of strong growth boosted by a combination of organic growth and acquisitions.

The placing price of 70c per share gave Newcourt a market value of approximately €48 million.

Established in 2002, the group has enjoyed the support of institutional and private investors.

Federal has established itself as one of the leading security providers in Ireland and Sigmar is a solid player in the recruitment market.

Turnover at Newcourt for the six months to June 30 was €25 million and Earnings Before Interest Tax and Depreciation were €2.37m. For the year it is forecasting turnover of over €60m and EBITDA of over €5m.

The group is led by Ted O’Neill while two executive directors Hugh O’Neill and John Barry head up Federal Group and Sigmar respectively.

A spokesman said Federal has achieved critical mass in the Irish security industry with a staffing level of 1,700 and offices in Dublin, Cork and Lisburn. It provides manned guarding, remote monitoring and electronic security services to the industrial, retail, financial and healthcare sectors.

Federal has identified expansion opportunities from existing and new clients, while Sigmar has a a strong presence in a buoyant Irish market, he said.