Profits double at Crown Paints
PAINT manufacturer Crown has nearly doubled underlying profits in the last year.
The company, the UK and Ireland’s largest independent decorative coatings manufacturer, has been revived under the ownership of Yorkshire private equity firm Endless, the specialist turnaround investor.
The 200-year old firm’s annual results are set to see ebitdar (earnings before interest, taxation, depreciation, amortisation and rentals) rising to £20m on sales of £180m in the year to 31 December 2010. Last year the firm editdar was £10.5m.
Despite tough market conditions Crown said it had increased its UK consumer market share from 17% to 19% during the year thanks to promotional strategies with key customers and a number of new product launches.
Strong cash management has enabled the company to clear its bank debt too.
Chief executive Brian Davidson, said: “Our size, independence and entrepreneurial culture mean that we have been able to continually adapt throughout the year in response to and anticipation of changing market conditions.
“This level of flexibility affords us a unique position as a highly competitive challenger brand in a market that is otherwise dominated by large multinationals.
“But cost control measures alone do not drive growth, and we have continued to invest and innovate during the year in order to maintain sales and increase profitability.
“As well as numerous new product launches, we have also stepped up our global sales and marketing initiatives and invested around £6m in plant, machinery, technological infrastructure and the development of our Crown Decorating Centre network.”
Mr Davidson said demand from the Middle East and Africa was strong, and was expected to grow in the future.
Looking ahead he added: ““The next 12 months will continue to present challenges for all manufacturing businesses, but we have a clear strategy for growth and are confident that Crown Paints will continue to thrive despite the economic backdrop.
“And as with any private equity-backed business, the creation of shareholder value remains a key focus area for all stakeholders within the business.”
