The AIM-listed speciality chemical company Zirax Zirax Plc (ZRX.L) today announced that 2007 was a successful year, as it increased capacity following the enlargement of its Volgograd plant and the opening of the new supply from Rosignano, Italy.Zirax Plc (ZRX.L) said its full year pretax profit rose 35% and revenues rose 23%. The group said demand still exceeds supply, and it is therefore confident of growing the business substantially during the coming year and the next.
For full-year to end December, the company posted pretax profit of $5.3 million against $3.9 million last year, while total revenues stood at $30.7 million compared with $25.0 million.
Valery Andosov, CEO, commented: "2007 was a successful year, which saw us substantially increase capacity following the expansion of our Volgograd plant and the opening of the new supply from Rosignano, Italy. Production in Italy together with the acquisition of Solith in Austria, in January 2008, will enable us to expand our footprint throughout markets of the Middle East, Africa, Central and Western Europe giving us a strong platform for growth.""With the combination of increased capacity and this platform for geographical expansion we are confident the Company is well positioned to significantly increase revenues during this current year and the next."
On January 21st, Zirax said it has bought Austria-based de-icing company Solith Anlagenbau und Service GmbH for up to €3.7 million.
The company said it would pay €200,000 in cash on completion of the acquisition, and the balance of up to €3.5 million would be payable through a two-tier performance related earn out arrangement for the sale of product in Austria over a maximum period of six years.
Zirax said the purchase would be funded out of its cash reserves, and it would invest about €290,000 in Solith and acquire €1 million worth of bank borrowings.
Today Zirax's shares went up slightly hitting a price of 10.75p after the London markets closed.
Reference
www.zirax.com
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