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Acquisitions bump up Nuplex profit

By Phil Boeyen, ShareChat Business News Editor

Friday 25th August 2000

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Building products and waste treatment company, Nuplex, has posted a full year net profit of $16.682 million, 43% higher than last year.

The outlook for further growth is also promising according to the company's directors, who say a full year's benefit from recent acquisitions, coupled with construction product growth in Australia and a recovering special waste treatment business, are all expected to contribute significant improvement.

Nuplex says its latest result includes trading from three past-year purchases - a construction product operation and a polyester resin business bought from Orica Australia, and an emulsion business.

In the past year most of the growth came from the resin business, which now provides 82% of Nuplex's total earnings before interest, tax and amortisation, compared with 73% last year. Total sales revenue of $383m is 22% ahead of last year.

The company says demand for its products and services grew in the principal Australian and NZ markets, which combined with a steadily recovering Asian market to contribute more than 50% of the revenue growth. Acquisitions provided the balance.

In geographical terms Australia continues to be the biggest earner for the company, providing nearly three-quarters of total sales and overtaking New Zealand in terms of share of ebita.

The company says its special waste treatment business is still working through a restructuring process and although good progress was made after a very poor first half, the ebita fell by 20%.

A final dividend of 7 cents has been recommended. Nuplex shares were unchanged at $2.98 after Friday morning's trading.

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