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Kalon raises underlying profits by 43% and confirms total dividend of 3.2p

Robert Cole
Tuesday 02 March 1993 19:02 EST
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KALON, the paint maker that failed in an attempt to buy its rival Manders last summer, has increased underlying profits by 43 per cent, writes Robert Cole.

Kalon did not make a profit forecast as part of its share-based attack on Manders. However, yesterday it confirmed the payment of a 3.2p total dividend that was promised as part of the bid.

Mike Hennessy, chief executive, said most of the growth came from greater operational efficiencies. This year, Kalon expects a profits boost from Novodec, the French paint maker it bought for pounds 20m last month.

Kalon made operating profits of pounds 13.2m, compared with pounds 9.2m. However, it suffered from a pounds 2.6m charge relating to the costs of the bid and from losses on the disposal of a chemicals operation.

The company published figures in line with the new FRS3 accounting standard, which includes the one-off costs in calculation of pre-tax profits and earnings per share.

Under FRS3, Kalon's earnings per share fell from 5.3p to 5.2p.

Kalon shares rose 1p to 142p yesterday. Kalon and Manders shares have both outperformed the market since the bid lapsed.

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