Colorpak to list on the ASX

The IPO opens on Monday March 9 and closes three weeks later, with shares expected to begin trading on April 20. The company is forecasting pre-amortisation earnings per share in 2004 of 5.9c, and 6.9c the following year. It predicts an operating cash flow per share in 2004 of 7.8c, rising to 9.5c the following year. Dividend forecast is 2.5c, or 5 per cent.

Of the $25m raised the bulk, $22m, will go interests associated with Commins family, with the balance to be retained by the company. The Commins family has said it will retain a significant investment in Colorpak for the foreseeable future.

Colorpak has a turnover of around $50m, and is one of the country’s top three independent package printing operations, along with Hannapak and Wadepack, the latter of which is already listed. According to Colorpak the size of its potential market is $600m, giving it an 8.5 per cent market share

Colorpak’s customer base is drawn from the healthcare, pharmaceutical, cosmetics, confectionary and consumer goods sectors. Customers include Bayer, CSL, Sigma, Pfizer, Astra Zeneca, Gillette, L_Oreal, Cussons, Nestlé and Patties.

Colorpak’s chairman Geoff Willis says, “We plan to expand the business through organic growth and acquisition. Since the Commins family acquired the business in 1985, Colorpak has had a compound annual revenue growth rate of 21.5 per cent and therefore we are confident of being able to build on this very strong base.”

In the last four years Colorpak has been on the acquisition trail, buying Melbourne company Foilmasters in 1999, Hale Foldpack in 2000 giving Colorpak a Sydney presence, and a year later came the acquisition of Pemara Corporation_s carton division.

Headquartered in Melbourne the company is a member of the Global Packaging Alliance, an affiliation which gives it access to international customers and global brands and to emerging trends and technologies.

Initially acquired by Walter Commins in 1985, the company is now managed by his three sons, Alex, Paul and Harry, with Walter retiring in 1999. Colorpak’s managing director, Alex Commins, said, “Over the past four years, Colorpak has been rated number one in the folding cartons sector of the BIS Shrapnel survey for customer satisfaction on key performance indicators relating to quality and value. This track record positions us well for the future.

“We are delighted to have attracted high quality directors with a broad range of skills to our board including Geoff Willis a former senior Amcor executive. This board, our long-standing executive team, and loyal employees are exceptional assets on which to build our future.” said Commins.

Colorpak’s board of directors comprises; Geoff Willis (non-executive Chairman), Alex Commins, (managing director), Paul Commins (executive director), David Heaney (non-executive director) and Tony Dynon (non-executive director).

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