CRH has announced details of £47 million worth of small acquisitions it completed during the second half of 1997, partly through the purchase of the minority holding of subsidiary companies in Europe and the US.
In Europe, CRH has spent £12 million buying out the minority shareholdings in the Heras fencing company and the Marlux paving products group in Holland. In the US, CRH has spent a total of £35 million on a variety of investments, including Utility Precast in Dallas, Groupe Permacon in Quebec and Ontario, Cordell Brick in Texas, Glass Distributors of America in Atlanta and Custom Glass in western Canada.
In another development has said that in future, it will translate financial results from its foreign subsidiaries and associates at an average exchange rate over the reporting period, rather the yearend exchange rate as has been the practice now.
This will mean that for 1997, CRH will convert sterling profits to pounds at the average exchange rate of 92.68p rather than the year-end rate of 86.64p, Dutch guilder profits will be converted at the average rate of 2.9581 rather than the year-end rate of 2.8896. Similarly, dollar profits will be converted at $1.5179 to the pound rather than the year-end rate of $1.4245.
"The change in accounting policy for the translation of the results and cash flows of foreign subsidiaries and associates at this point in time is very much in line with CRH's conservative approach and international trends in accounting practices," said CRH chief executive Don Godson.
