Slimmed-down Laporte delivers ahead of schedule
15 Jan 2000
A two-year restructuring programme has borne fruit at chemicals group Laporte, according to its new management team; the vastly slimmed-down company now has a reduced cost base and and enhanced profitability. However, the strength of sterling wiped out some £14 million of profits in 1997, and the company has set itself harsh targets for the next three years.
Despite the currency hit, pre-tax profits climbed by 4 per cent to £132 million. Turnover plummeted 22 per cent to £830 million, partly due to the strong pound and partly because of a series of disposals including adhesives businesses; absorbents; and building products. These have led to the company almost halving its number of sites and losing 40 per cent of its staff and a third of sales.
When chief executive Jim Leng started the restructuring, he set targets of 15 per cent return on sales and 25 per cent return on capital employed within three years. The company has hit these targets a year ahead of schedule, he said, so the goalposts are to be moved Leng is now aiming for 17.5 per cent on sales and 27.5 per cent on capital. 'We are confident that the strategy and programmes we have in place will continue to enhance the growth potential of the group,' he commented.
