Tinned tuna giant Princes Group is looking at acquiring other businesses after the firm’s listing on the London Stock Exchange last week.
The group, which also produces Branston baked beans and Napolina olive oil, floated at 475p a share giving Princes a valuation of £1.2billion.
Simon Harrison, chief executive of Princes, said on Tuesday the listing represented a ‘milestone period’ for the company.
The group’s future now looks set to include ‘value accreditive’ mergers and acquisitions deals, Harrison added.
Princes’ shares rose on Tuesday as the group published its latest nine-month trading update.
Shares in the company rose nearly five per cent in early trading on Tuesday to highs of 467p before giving back gains eased.
The business reported a sharp increase in nine-month core profit in its first results since going public.
Listing: Lat week, Princes launched its initial public offering at the bottom end of its marketed range
Princes, one of Europe’s largest grocery suppliers, reined in costs and streamlined operations in the period in a bid to boost margins.
The company, like its Italian parent NewPrinces, has been focusing on initiatives to boost margins and improve its offerings as consumers seek out more affordable options.
Princes’ pre-tax earnings for the nine months ending 30 September jumped over 51 per cent to £111.1million.
Revenue reached £1.4billion, representing a drop from £1.5billion previously despite the earnings jump.
The business said: ‘As expected, the deflationary pricing conditions across several core raw materials impacted revenue, given the Group’s pass-through mechanics with customers.’
The groups earnings margin, a measure of profitability, grew to 7.8 per cent from 4.9 per cent, driven by gains across Italian, foods and drinks segments.
Prince said it was focusing on ‘earnings quality’.
Harrison added: ‘This has been a milestone period for Princes, with our admission to trading on the London Stock Exchange.
We have taken decisive actions to enhance earnings quality, improve efficiency and strengthen our commercial partnerships. We are building a resilient, margin-accretive and customer-led business with a clear path for sustained growth.
‘Our M&A and integration capability set along with the firepower we now have as a group is creating exciting opportunities to pursue value accretive M&A, in line with our stated strategy.’
Last week, Princes launched its initial public offering at the bottom end of its marketed range with a value of £1.2billion.
Russ Mould, investment director at AJ Bell, said: ‘Princes’ IPO had all the appeal of a tin can stuck at the back of a cupboard – not very exciting but still a potential source of sustenance for those willing to be brave.
‘The lacklustre investor demand for its stock offer saw the shares priced at the bottom of the IPO range and fall further once they hit the market.
‘It wasn’t a great start to life as a listed entity, so it was inevitable that management would have to work harder to bang the drum and convince more people that the business is worth a look.’
He added: ‘A lot of investors will be sitting on the sidelines until there is a full set of financial results by which to judge the company post-listing.
‘Princes will have to let its business performance do the talking rather than management if it is to truly win over the market.’
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Freetrade
Freetrade
Investing Isa now free on basic plan
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
#Princes #Group #eyes #takeover #targets #London #debut #bolsters #firepower
