THE underlying strength of Mackie International's business was shown by the resilience of the Belfast company's share price after the end of the IRA ceasefire on February 9th, according to chief executive Mr Pat Dougan. "People did not take their money out", said Mr Dougan.
Yesterday, the company reported results for its first full year of trading as a public company. Pre tax profits at the group rose 60 per cent to £3.27 million, while turnover grew by 16 per cent to £23 million in the year to the end of December.
Mackie came to the stock market in London, and later Dublin, shortly after the announcement of the ceasefire 18 months ago.
Mackie, whose factory straddles the "peaceline" in West Belfast, is seen as a symbol of economic regeneration in the North. Its factory floor was chosen as the venue for the delivery by President Clinton of his keynote address during his visit to the North last November.
The ending of the ceasefire was "a traumatic experience", according to Mr Dougan. "It does not affect us on the shop floor but generally speaking we have to see the peace continue, and we believe it will", he said.
Turnover and profitability increased in all three of Mackie's divisions. The core textile machinery division reported an increase in turnover from £17.8 million to £19.2 million, while profits, before common costs, increased from £2.8 million to £3.2 million. The textile division undertook a re equipment programme during the year and is now in discussion with a number of companies about joint ventures.
In particular, it is looking at joint ventures with a number of German companies seeking to establish lower cost manufacturing operations outside Germany, said Mr Dougan.
The environmental division, which makes water treatment machinery, increased its turnover from £1.5 million to £3 million while profits, before common costs, rose from £106,000 to £531,000. The division has a strong order book in Britain and expects to commence a contract in Argentina which has been delayed for most of last year.
Mackie expects to build a £12 million foundry this year, to replace its existing Springvale foundry which made a profit, before common costs, of £35,000 on a turn over of £1.2 million last year. This compared to a loss of £75,000 on a turnover of £1.1 million previously. The North's Industrial Development Board is expected to contribute around £5 million to the cost of the foundry, while Mackie will put up around £3.6 million. The remainder will come from low interest loans backed by the EU, said Mr Dougan.
Earnings per share were 30.5p compared to 37.4p last time, and a dividend of 11p has been declared.
Mackie shares moved ahead from 393p sterling to 395p in trading in London. They did not trade in Dublin.
Mackie also announced yesterday that the Washington State Investment Board has taken a 33.3 per cent stake in the company. The US fund bought the stake last Thursday, according to Mackie.
