Powerflute Oyj reports on stellar year

Powerflute Oyj reported a stellar 2015 on Tuesday, with revenue and earnings growing significantly during the calendar year.

The AIM-traded company saw group revenues rise 137.9% in its preliminary results, to €357.2m (£278m) from €150.1m. EBITDA, excluding non-recurring items was up 164.1% to €55.2m, from €20.9m.

Powerflute's net debt reduced to €37.1m, from €61.5m, representing 0.7x EBITDA. Operating profit was €45.3m, up 204% from €14.9m, and underlying earnings per share increased to 9.6 euro cents from 3.8 cents.

Including non-recurring items, EBITDA increased to €53.3m from €16.2m, operating profit improved to €43.3m from €10.1m, and the company's basic earnings per share were 9.1 euro cents, from 2.2 cents.

Profit before tax was €37.3m, from €8.6m in 2014.

"2015 has been another very successful year for Powerflute," said Powerflute Oyj chairman Dermot Smurfit.

"The Corenso acquisition has been truly transformational, more than doubling the size and profitability of the group and significantly increasing its scale and global presence," he added.

Smurfit said that, although the group benefited significantly from favourable market conditions and foreign exchange rates throughout the year, its executive management teams had also delivered improvement in underlying operating performace across the group.

He said that, despite some recent softening in market conditions, both coreboard and cores, and packaging papers had satisfactory forward order books at price levels comparable to the prior year.

"In the absence of any marked change in the external environment, we currently expect that 2016 will be another successful year for the group," he concluded.

Powerflute's board proposed a dividend increase of 100% to 3 euro cents per share, from 1.5 cents in 2014.

Trading in the company's shares was choppy through the day, however, and at 1335 GMT it was down 0.15% at 83p.