Niche investment group One51 is to embark on a significant capital raising round in the coming weeks, in order to finance acquisition-led growth in its key plastics and hazardous waste divisions.
Chief executive Alan Walsh said at the company’s AGM in Dublin yesterday, the board will be seeking shareholder support for the move and that capital raising options are being evaluated.
While he also said that the amount of funds to be raised will be decided, “post shareholder engagement”, it is believed One51 is looking to raise substantially more than the €20m, or so, previously speculated upon.
Davy Stockbrokers is one of the parties advising the firm on its expansion route and further details are expected in a matter of weeks.
One51, which last year returned to profit after eight years of losses, recently agreed to buy UK-based waste management firm, Straight, for around €13m.
The Irish company’s growth strategy will be two-fold — part organic, but acquisition-led.
“We will look to exploit the various growth initiatives, which have been identified in our plastics and hazardous waste businesses, whilst also exploring acquisition opportunities,” Mr Walsh told shareholders.
“We are currently evaluating capital-raising options to fund these opportunities and have commenced a consultation process with our shareholders and advisers.”
Organic-led growth of its China-based operations is another priority.
One51’s 2013 accounts, published last month, not only showed a post-tax profit of just over €7.1m, after a loss of €116,000 in 2012 and a first total profit for the firm since 2006; but also, at €40.3m, net debt levels at their lowest for seven years.
At the time, Mr Walsh said the group’s financial recovery puts it in a position to focus on growth and increasing shareholder value.
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