Adare Printing Group is looking for further strong growth following the better-than-expected 15.9 per cent rise in pre-tax profit from £10.9 million to £15.9 million in the year ended April 30th 1998.

The primary objective remains earnings and cash flow growth as the group is placed "in a substantial growth path", according to chairman, Mr Denis Bergin. Adare is to drop "Printing" from its name as it accelerates the move towards out-sourcing of printing contracts. Out-sourcing accounted for £40 million of turnover last year, according to finance director, Mr Peter Lynch. The focus, he added, will be on fewer high quality customers with repeat orders.

While there will be a push on core growth, the group will also be seeking acquisitions. Gearing amounts to 85 per cent but Mr Lynch reckons that this would disappear if there are no acquisitions within the next 18 months. Adare is looking to increase its market share in business systems and facilities management (FM). Three of its major companies, Carwin, Kalamazoo Security Print and WBF "are capitalising on the trend towards out-sourcing and FM". In common with other companies, Adare is moving more into these areas which are expected to drive the three companies' turnover from £65 million sterling to £100 million in the next few years.

Adare which has already well known brands, such as Platignum, Kalamazoo and Protaprint, is seeking to increase its portfolio through the acquisition of recognised brands. Adare said Prontaprint enjoys 95 per cent brand recognition, Kalamazoo has a customer base of 45,000 accounts while Platignum is working on initiatives to tap its potential.

The latest results were boosted by a positive contribution from new acquisitions and a £1.5 million profit on the disposal of businesses. Excluding these indicates an underlying 15.8 per cent rise in operating profits. Sales increased by 41 per cent from £115.9 million to £163.5 million.

Overall, it has been a good year, with the subsidiaries responding well to the challenge of increasing their sales, Adare said. The direct mail sector is "yielding significant benefits in turnover and profitability". The three companies, Lexicon, Pillings and GNE, have been involved in large capital expenditure programmes. The labels division had a £2 million investment programme. With the UK market accounting for over 90 per cent of sales, wage inflation, amounting to 7 per cent last year, is a problem area. British employment levels were reduced from 1,610 to 1,505 and this trend will continue.

Reflecting growth, earnings per share rose by 16.6 per cent from 62.2p to 72.5p. Shareholders are to benefit with a rise in the final dividend from 4.5p to 6.7p, making a total of 11.40p, up from 7.6p.