Condom maker raises £90m for growth plan

CONDOM maker SSL International is looking to raise around £90m to fund its ambitious growth plans.

The group, which has its European headquarters at Trafford Park, said it would place 19.19 million new shares, and no more than 9.99% of its share capital At Tuesday’s closing price of 466.25p, the placing will raise £89.5m.   

In the last two years, SSL International has splashed out around £63m on acquisitions, including £14.6m on orthotic insoles maker, Orthaheel, and £4.6m on Crest, Switzerland’s second biggest condom maker.

It has also acquired a 15.5% stake in condom distributor BLBV for £24.6m, as well as the 50% shareholding it did not already own in the Chinese group, Company of Qingdao London Durex Co, at a cost of £19.1m.

SSL also has an option to increase its shareholding in BLBV to 50%, as well as the option to acquire 100% of Gainbridge Investments (Cyprus) Limited, a company which packages and distributes the Contex brand in Ukraine.

In addition, the group has spent £26m on restructuring its supply chain.
SSL also updated the market on trading since October 1 and said that the performance of its flagship brands Durex and Scholl “remains encouraging”.

It added that while the trading environment is “unquestionably difficult” the group remained confident of achieving its targets, and good underlying sales, cost control and profit growth is being supplemented by currency benefits arising from its trading base in Europe and Asia.

Chief executive Garry Watts said that despite the challenging global consumer environment, SSL continues to show its potential.

He said: “Good underlying sales, continuing cost control and profit growth, supplemented by the currency benefits arising from our trading base in Europe and Asia, are driving strong earnings growth.

“The options to take control of the Russian and Ukrainian businesses, which are fully consistent with our strategy and our core capabilities, give us yet another opportunity for further expansion.”