Laporte registers record profits

A three-year programme of transformation has paid off for UK speciality producer Laporte, claims chief executive Jim Leng.

Announcing record profits, margins and earnings for the year to 31 December, Leng commented that the performance had been achieved `despite a material reduction in operating income and the dilution in earnings resulting from the divestment programme.'

The group earned pre-tax profits of £134million, a 3per cent increase in constant currency terms; on the same basis, turnover from ongoing operations rose by 4 per cent to £710million. Margins for the continuing businesses rose from 15.9 per cent to 16.7 per cent. Capital investment also reached record levels, at just short of £90million.

In August last year, Laporte bought out Inspec, a specialities firm which had been formed from offshoots of first BP then Shell. These businesses are now integrated with Laporte's speciality organics operations. Later, Inspec's mining chemicals operations in the US were hived off. Other sales over the year include the management buy-out of the European hygiene division in December.

The speciality organics division, which accounts for almost a third of both sales and profits, had a particularly strong fourth quarter, which helped boost its profits by 34 per cent over the year. Fine chemicals benefitted from a broadening customer base and product range; investment in capacity and R&D remains high.