Luxfer’s IPO chances boosted by strong results
A SALFORD-based company which postponed its proposed flotation on Wall Street in December due to volatile market conditions has announced a record set of trading figures for 2011.
Materials technology company Luxfer Holdings grew revenues by 22% to £317.3m in 2011 (2010: £261.2m). Pre-tax profits grew by 52% to £35.4m (£23.3m).
Luxfer’s CEO Brian Purves said: “It is pleasing to have all the parts of the Group contributing at a high level, allowing us to deliver our best-ever profit result despite ongoing economic uncertainty.”
The company, which employs around 1,500 people in 25 countries, has divisions which make products using aluminium, magnesium, titanium and carbon composites, as well as chemically-derived zirconium compounds.
The products are used in a range of application from gas cylinders to composite alloys for the automotive and aerospace sectors.
Revenues at the gas cylinders division were up by 9.6% on a constant currency basis to £138.8m, while the Elektron division that makes magnesium alloys increased sales by 38% to £178.8m.
The company, which completed a £110m refinancing during the course of the year, saw its net debt increase to £71m (£67.6m)
It added that trading since the year end “remains strong”, benefiting from an improved performance by its gas cylinders division and a more favourable exchange rate.
Luxfer had planned to raise $185.4m through its New York flotation in December 2011, which it was looking to use to pay down debt and fund growth plans. When announcing its postponement, Mr Purves said the company “will reconsider recommencing the IPO when market conditions are more stable”.
