Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Bottom line: Field of activity

Wednesday 23 June 1993 18:02 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

THE LAST time that Field Group came to the market was in 1929, when the prospectus for the paper carton producer stretched to four sides of A4- sized paper. Now, 64 years later, its prospectus stretches to 78 pages.

Field's recent history has been hectic. It was taken private in 1964 by Reed International, which then sold it as part of Reedpack in 1988. Two years later Reedpack was itself taken over by SCA, the Swedish paper and packaging group, and Field regained its independence via a buyout in May 1991.

Field has survived both the burden of debt and the recession, with operating profits before exceptional costs rising from pounds 7.3m in 1989/90 to pounds 12.6m in 1992/93. It will use the proceeds of the offer to repay borrowings.

The management team is strong and experienced. Some pounds 55m worth of capital investment over five years has ensured that Field's printing and design technology is modern and sophisticated.

Its relationships with blue chip clients such as Marks and Spencer, Sainsbury, Chanel and Rothmans are of long standing,with some enduring over 30 years.

The packaging market is not only recovering, says Field, but is returning to pre-recession levels.

James Capel is offering the shares at 250p, valuing the company at pounds 148.4m. Assuming profits this year of pounds 13.4m pre-tax and earnings of 16.5p a share, this puts the shares on 15 times earnings.

This rating may be a discount to the sector, but it is no bargain. Given that investors have plenty of choice about new issues, they can afford to miss this one.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in