Windsor, Berkshire-based Seibe Plc’s interim results showed an upturn in profit and optimism for the future following its acquisition of batch control systems firm Eckardt AG, in which it acquired a 52% stake on December 2. Group turnover climbed 18.2% to UKP895.3m, while profit before tax rose to UKP94.2 – a rise of 17.3%. Earnings per share rose 16.2% to 13.6p, and the board gave shareholders a christmas present of 3.6p, up 10% on last time. The company, which also bought Eberle GmbH and Schmidt Armaturen GesmbH of Germany and Austria respectively on April 4 this year, is only involved in the computer business through Eckhardt and its existing control systems company Foxboro Co. It will pay a UKP12m subscription for Eckhardt and has the option to buy the remainder in October 1994. This company showed a loss before tax of UKP2.4m in the year to December 31 1992, on a turnover of UKP92.3m, but the group hopes to turn it round to equal Foxboro’s performance in 12 to 18 months. All three acquisitions – totalling UKP113.8m – were financed by a UKP184.3m one-for-10 rights issue at the end of November, some of which was reinvested and some of which was ploughed into the group’s cash reserves. Net cash flow for the six months was UKP44.4m, up 29.8% from last time. Increased business includes contracts signed in the last six months with Heineken Breweries and far eastern firms in the period. This, combined with the advantage of sterling devaluation on the group’s largely foreign business and the rights issue, pushed gearing down to 56.2% from 68.7% last time. The control systems group, which contains a number of companies unrelated to computers in addition to the two process control systems companies, accounted for UKP644m, 71.9% of turnover, and UKP97.4m or 79.6% of profit before tax, the company notes.
