Clondalkin, the print and packaging group, is looking for further strong growth following the 22 per cent rise in pre-tax profit from €34.45 million (£27.13 million) in 1997 to €42.1 million (£33.16 million) in 1998. The market enthusiastically embraced the results, and the Dutch acquisition, by pushing the share up 35 cents to 550 cents, a rise of 6.8 per cent. The increase in business scale and the range of strong product, market and technological positions, offer many opportunities for continued development in the future, Clondalkin said. The annual compound growth in earnings has been 26 per cent over the past five year, and the group is looking for mid-teens growth. This will be achieved from its core operations and acquisitions.

The latest results show a 22 per cent rise in earnings per share from 61.66 cents (48.56p) to 75.50 cents (59.46p). They were boosted by an exceptional gain of €3.3 million on property disposals which added 5.64 cents to earnings. Shareholders are to benefit with a 10 per cent rise in the final dividend to 6.4584 cents (5.0864p), bringing the total to 10.1406 cents (7.9864p). The dividend is now covered more than seven times by earnings.

The strong profit surge was achieved on a marginal 3 per cent rise in sales to €513.18 million (£404.17 million). Volume growth was a little better at 6 per cent. Consumer demand held up well in most markets, according to Clondalkin, but "raw material input prices remained flat to declining all year". The results, as in previous years, reflect "more on operational initiatives and investment than on general market conditions".

A breakdown in operating profit shows good gains in all geographical areas with the exception of the domestic market which accounts for 11 per cent of sales. The Irish operations "had mixed results and were down on the previous year". The fall in profits was due to a relocation of Guy & Co which "took its toll in the first half", said chief executive Mr Norbert McDermott. Trading in Ireland is now "very buoyant" and 1999 is "very strong".

Clondalkin remains in a strong financial position. Cash flow from operations grew from €43.3 million to €50.5 million. Net debt at the end of the year amounted to €59 million, giving a gearing of 48 per cent. Interest payments are well covered at 8 times.

Clondalkin said a "well-executed investment programme has been vital" to achieving the growth in earnings and cash flow.