The Growth of Evode – A Financial View
The Company was incorporated on 3rd June 1932.
Spic & Span Shoe Polishes Limited held the First Ordinary General Meeting at 193, Sandon Road, Stafford, on Wednesday, 22nd November 1933.
The Capital Authorised was 1,000 Shares, £1 paid £1,000 and Loan Accounts £1,000
C. Axelrath £350, H. Jolles £250, G.G. Niclas £150, and Lotus Limited £250.
The Directors were Frederick Marson Bostock, James Forrester Bostock and Neville Frederick Bostock.
Secretary P.J. Lingwood, and
Auditors Annan, Dexter 21, Ironmonger Lane, London EC 2.
The Net Trading Loss for the period to 30th September 1933 £1,135 to which is added Preliminary Expenses £150 resulting in a Debit balance carried forward £1,285.
In 1934 Kurt Edgar Oberlander joined the board font-weight: bold; and the Company made a loss of £665 bringing the debit balance on Profit& Loss Account to £1,950. The Loan Accounts were now £1,195 – C. Axelrath £518, H. Jolles £300 and Lotus Limited £377.
Neville Frederick Bostock and Kurt Edgar Oberlander resigned and Harold Issac Clipstone joined the board on 30th September 1935.
On 18th September 1935 the Authorised Capital was increased to £3,000 and Loan Account balance C. Axelrath was £1,069. The company made a loss for the period £344, which brought the debit balance to carry forward to £2,294.
In 1936 the Capital Subscribed and Paid Up was £2,939 as the Loan Accounts were converted to Paid Up Shares. The Loss for the period amounted to £647, to which is added £2,294 brought forward, which brings the cumulative deficit to £2,941 on the Balance Sheet.( The figure stated in the Report of the Directors £2,491 was not correct.)
The fifth Ordinary General Meeting was held at 1 Glover Street, Stafford on Thursday, 18th November 1937.
Frederick Marson Bostock and James Forrester Bostock resigned and John James Ernest Forman was appointed a Director. D.I. Wood was appointed Secretary of the Company. The Net Trading Loss for the period £717 was added to £2,941 loss brought forward which increased the Profit and Loss deficit balance to £3,658.
In 1938 there were a number of changes:-
Herman Simon was appointed a Director
The Authorised Capital was increased to £7,100 on 16th February
The name of the Company was changed to Spic and Span Chemical Products on 16th February and to Dove Chemical Products on 26th September.
Messrs Dean & Son were proposed for Appointment as Auditors, but it never happened and Annan, Dexter & Co, appeared to have continued despite having retired.
Losses continued, this year £1,740 was added to the Profit and Loss Account which brought the cumulative deficit to £5,398.
In 1939 the company had a profit £180, which reduced the Balance carried forward to £5,218.
During 1940 the name changed again, this time to Evode Chemical Works, Harry Bainbridge and Doris Irene Wood were appointed directors and the the company purchased a motor car at a cost £30.
The profit for the year £1,054 19s 1d deducted from the debit balance brought forward left £4,162 18s 7d to be carried forward to the next account.
The loss in 1941 amounted to £534, making £4,697 to be carried forward as a debit balance.
Record profits in 1942 amounted to £2,081, which brings the balance sheet deficit to £2,617.
The Balance Sheet as at 30th September 1943 included:-
Freehold Property, Factory, 22 Stone Road £2,500
Motor Car £25
Profit for the year £330 resulting in a Profit and Loss debit balance £2,287.
The company continued to be profitable with £737 recorded in 1944 reducing the debit balance to £1,550.
The Fourteenth General Meeting was held at Glover Street on 21st April 1947 and the Directors presented their Report and Balance Sheet:-
Harold Issac Clipstone and Harry Bainbridge resigned as Directors.
Isobel Frances Bostock and Diana Bostock were appointed Directors.
H.E. Hadley was appointed Company Secretary.
Profit on sale of 22 Stone Road £145 and Profit for the year £740, from which is deducted the debit balance brought forward £548, there is thus a credit balance £336 as at 5th October 1946.
The Sixteenth Annual General Meeting held on 2nd May 1949 advised the following: Mrs D.I. Wood resigned her directorship and Mrs Hilde Ruth Simon was appointed a Director, Messrs John W. Hinks & Co, Birmingham, were appointed Auditors, and Profits for the year ended 2nd October 1948 were £2,700, up almost a thousand pounds on the previous year. This time the Directors recommendation for a change of Auditors did stick, as it was based on cost saving and having a local firm for easier consultation.
The Twentythird Annual General Meeting was held at Messrs Lotus Limited, Sandon Road on Tuesday 6th March 1956 where the following was announced: Profits had doubled to £91,803 compared to £46,421 in 1954, Freehold Property, Common Road increased by almost £15,000 to £58,211 and over £20,000 was invested in Plant & Machinery.
Issued Share Capital had increased to £50,000 from £21.442 in the previous year end, which together with retained profits financed the investment in Common Road Manufacturing Site. During 1956 the property development at Common Road Site doubled its valuation to £113,826, and profits increased by 16% to £106,576.
At the Extraordinary Meeting, held just after the Twentyfourth Annual General Meeting, the following gentlemen were appointed Sales Directors of the Company.
Mr Edwin H. Beaumont Sales Director to the Industrial Adhesives Division
Mr R. Yudolph Sales Director to the Building Chemical Division
Mr Jack E. Linnell was appointed Group Finance Director and Secretary circa 1960.
Evode Group Trading Results for the next five years ended 30th September 1961:
1957 1958 1959 1960 1961
Sales 1,690 1,741 1,851 2,324 2,618
Gross Profit 514 580 644 794 889
Gross Profit % 30.4 33.3 34.8 34.1 33.9
Profit before Tax 81 100 147 215 263
The Group Balance Sheet as at 30th September 1961 recorded Fixed Assets:
Freehold Land and Buildings 300,733
Plant and Machinery, Motor Vehicles, etc 195,843
Investment – Common Road Site 496,576
The Annual Report and Accounts for the year ended 29th September 1962 recorded Group Profit before Taxation £278,660, an increase of 6% compared to previous year.
The leasehold premises occupied by Vik Supplies were partially destroyed by fire during the year; they were in any event old and not entirely suitable for their present use. Accordingly the Directors decided to transfer Vik’s operations to a new factory extension erected on the Common Road Site. The new buildings cost about £150,000 and were in use at the end of 1963.
Mrs I.F. Bostock and Mrs D. Bostock resigned after 17 years service on 18th January 1963.
Dr Simon announced the planned flotation of the Evode Group in Christmas 1962 and subsequently invited staff to make know their interest in acquiring shares in the Company. Evode Holdings Limited was Incorporated on 30th January 1963 and the advertisement for permission to deal in the 1,400,000 Ordinary Shares of 4s. each placed in the Financial Times on Monday 11th February 1963.
The First Annual General Meeting of Evode Holdings Limited was held on Wednesday 11th March 1964. The directors H. Simon, J.F. Bostock, G.S. Bostock and J.E. Linnell presented their first Report and Accounts:
Profit for the Period: £306,503 was 10% in excess of the forecast.
Dividends Interim 71/2% £12,862
Final 15% £25,725
Capital Commitments are shown at £195,500 reflects the balance payable for the Factory Extension, and extension to the Administration Block, which when completed gave much needed additional office space and also enabled more room available for the Laboratories. This expenditure and also the cost of a new warehouse were financed out of the Company’s own resources.
At an Extraordinary General Meeting on 16th July 1964 the capital of the Company was increased to £1,000,000 by the creation of an additional 2,125,000 Ordinary Shares of 4s. each and an additional 375,000 Deferred Ordinary Shares of 4s. each.
Profits for the year ended 26th September 1964 were £344,199, an increase of 12% on 1963, enabled a total dividend of 18%.
The Group acquired its first Data Processing Equipment to handle an increasing volume of work more efficiently and economically.
In November 1964 the first ever International Conference of Evode Licensees was held at Stafford, and was attended by representatives of companies who manufacture the products under licence from countries as far apart as Finland, Australia and Japan.
The Directors presented their Third Annual Report and Accounts for the year ended 25th September 1965; Trading Profits increased by over 13% to £390,438 and proposed the same as previous year total dividend payments of 18%. A small increase in profits to £404,038 and dividend maintained at 18% were reported for 1966 despite the difficult circumstances through which the country was passing. The Directors presented their Fifth Annual Report and Accounts for the year ended 30th September 1967at the Annual General Meeting;
Consolidated Profits increased by 20% to £485,435
Total dividend 21% compared to 18% for the previous year
B.I. Liss was appointed a Director in July 1967
and passed a resolution that the capital of the Company be increased to £1,500,000 by the creation of an additional 2,500,000 Ordinary Shares of 4s. each.
In 1968 the Group Turnover was £5,133,687 and Profit £607,299, an increase of 25% compared to previous year.
Capital Investment in Land & Buildings continued in 1968:
New Canteen Building with additional office space on the first floor
New Warehouse Building and additional four acres of land in Stafford
2.4 acre site in Rushden for expansion of Cox & Wright Ltd
Extension of the factory of Allweather Evode Paints Ltd.
The Seventh Annual General Meeting of Evode Holdings Limited was held on Friday 6th March 1970 to present the following:-
Directors Report for the year ended 27th September 1969
Profit before taxation £632,764, up 4% as against £607,299 for the previous year
Total dividend payable for the year is 15%, the same as last year
The New Warehouse was completed and a shell of the new factory erected accounted for £147,033 out of the £190,467 increase in Consolidated Fixed Assets.
Pre-Tax profits for the year ended 26th September 1970 showed a rise from £632,764 to £706,740, an increase of almost 12%. Group sales exceeded £7 million, an increase of 14% on previous year. Mr B.I. Liss was appointed Joint Managing Director in December 1970. The Directors recommended an unchanged Dividend of 15%.
The Ninth Annual Report and Accounts for the Group show profit before taxation of £744,704 compared to £706,740 for the previous year. Group Sales at £7,912,444 show an increase of 12.6%. The Final Dividend was approved at 12% bringing the total for the year to 16% compared to previous years 15%. Mr A.H. Simon was appointed a Director of the Company. The nominal capital of the Company was increased by the addition of 2,500,000 Ordinary Shares 20p to £2,000,000 on 10th March 1972.
The Directors’ Report and Accounts for the year ended 30th September 1972 recorded an after tax profit of £890,616 against £745,161, an increase of 20% on last year. Turnover at £8,589,969 was 9% up on previous year. Increasing world wide demand for Evode Consumer and Industrial Products has lead to the formation of Evode (Export) Limited, under the guidance of a newly appointed Managing Director. The Eleventh Annual Report and Accounts which cover the period ended 29th September 1973 show a profit of £1,135,683 up 28%, and Group Sales at £10,681K, an increase of 24% on previous year.
Evode Holdings Limited will in the future take on overall Group management, i.e. resource allocation, strategic planning, control, acquisitions, etc. Derek F. Channon was appointed to its Board as a Non-Executive Director on 21st January 1974. The changes in the organisational structure will solve three main issues – Management Development and Succession and Growth, both by acquisition and organically. The autonomy given to the Managing Directors of the seven subsidiary companies should greatly increase the efficiency of the organisation. The Twelfth Annual Report and Accounts show a profit of £1,237,653 against £1,135,683 for last year. The Sales at 13,260K, increased by 24% despite the three day working week and shortages of raw materials. A facilities management deal has been arranged with the Hoskyns organisation. This arrangement of handing over the Evode Computer Department and buying back the services will result in substantial cost savings. The accounts for 1975 show a profit of £1,207,849 on Group Turnover £14,372K up just over a million compared to previous year. Total exports were £1,391,222 as against £993,005 for last year. The average number of employees of the Group was 1,059 with an aggregate remuneration of £2,828,908. Sales for the year to 25th September 1976 were £18,763,211, an increase of 30.56%. The profit for the Group amounts to £1,449,826, which was £241,977 more than last year, representing an increase of 20.03%. In the year ended 1st October 1977 the Group Sales were £23,218,046, an increase of 23.74%. Profits before Taxation of £1,482,727 were below expectations. Whilst the first half year Trading Profits were satisfactory, Profits before Taxation during the last quarter of the financial year proved disappointing in the light of fall-off in demand and, because of the Price Commission, and inability to pass on increased costs. An Extraordinary General Meeting of the Company was held on 21st March 1978 for the purposes of considering Ordinary Resolutions –
(1)to increase the authorised capital of the Company to £4,000,000; and
(2)to sanction the issue to shareholders of 7,958,646 new Ordinary Shares, credited as fully paid, by way of capitalisation of reserves.
September, 1978 saw not only the end of another financial year, but probably also the end of an era. Dr. Herman Simon, C.B.E., the Company’s founder and first Chairman, died on 8th September 1978.
On 27th September 1978, Mr P.J. Wright was elected to the Board, to fill the vacancy occasioned by the death of Dr. H. Simon.
Sales to Customers for the year were £26,761,380, an increase of 15.26%.
The profit for the Group, before Taxation and before extraordinary items, amounts to £1,339,930.
Included in the turnover is an amount of £1,373,300 representing Direct Exports from the United Kingdom. After extensive discussions and consultations with employees and trade unions, contracting-out certificates for both Works and Staff Pension Funds were obtained from the Occupational Pensions Board. The average number of employees of the Group was 1060, with an aggregate remuneration of £4,235,334.
On 1st August 1979 Mr P.J. Wright relinquished and ceased to be a Director. On 8th February 1980 Mr G. S. Bostock resigned from the Board. Group profits before taxation for the year to 29th September 1979, amounted to £1,610,998, compared with a figure for last year of £1,339,930. Group sales totalled £29,038,064, compared with £24,818,329 for the previous year – an increase of 17.0%.
It was reported in the Birmingham Post 8th August 1980 that the Simon family turned down a bid for Evode worth 61p a share from Donald Macpherson last year (against the advice of Evode’s then chairman).
On 1st April 1980 Mr D.S. Winterbottom was appointed to the Board as Finance Director.
On 30th April 1980 Mr V. Vohralik and Mr A.A.C. Cobbold, who are Managing Directors of Evode Limited and Evode Roofing Limited respectively, were appointed to the Board.
Group profits before taxation for the year to 27th September 1980, amounted to £2,067,886 compared with a figure for last year of £1,610,998 – an increase of 28.4%.
Group sales totalled £32,467,936 compared with £29,038,064 for the previous year – an increase of 11.8%. On the 26th March 1981
Prof. D.F. Channon did not seek re-election to the Board.
On 27th March 1981 Mr J.E. Linnell resigned from the Board
On 1st April 1981 Mr B.H. Nicholson was appointed as a Non-Executive Director.
Group profits before taxation for the year to 26th September 1981, amounted to £2,101,212 compared to last year £2,067,886, an increase of 1.6%.
Group sales totalled £32,653,974 compared with £32,467,936 for the previous year, an increase of 0.6%.
On 25th March 1982 Mr J.F. Bostock retired from the Board and the company changed its name to Evode Group Public Limited Company (Evode Group p.l.c.).
Evode Limited’s New Finished Goods Warehouse was opened on Friday 18th June 1982 by Sir Hugh Fraser M.B.E. Member of Parliament. The 61,000 square foot warehouse provides storage for up to 8,500 pallets. It currently handles over 700 tonnes of products each week, with stock location and rotation controlled by a bespoke computer system.
Group profits before taxation, exceptional and extraordinary items for the year to 2nd October 1982 amounted to £1,864,386 compared to previous year £2,101,212.
Group sales totalled £42,731,441 compared with £32,653,974, an increase of 30.9%.
The consolidated turnover of the newly acquired businesses amounted to £7,103,782.
However, the Group trading profit before interest and exceptional items showed an increase of 22.1%, in part reflecting the contribution before interest of the acquisitions.
On 28th July 1983 it was announced that the Board is raising approximately £3.8 million, after expenses, by a rights issue at par of £3,979,248 8 per cent. Convertible Unsecured Loan Stock 2002/2008 (the “Stock”), on the basis of £1 nominal of the Stock for every four Ordinary Shares held on 20th July 1983. The conversion terms of the Stock are equivalent to a conversion price of approximately 103p per Ordinary Share. It was also announced that the Company was proposing to raise a further £500,000 from Equity Capital for Industry Limited by means of a subscription at par for 500,000 8 per cent. Cumulative Redeemable Preference Shares of £1 each. The Simon family owns 42 per cent of the shares and would not be able to contribute a full 42 per cent of any new equity capital Evode might want. ECI wishes to make a total investment of not less than £1 million in the company. It has therefore offered to buy up to £550,000 worth of the family’s entitlement to the convertible loan, none of which the family, in fact, is taking up. This will eventually cut its shareholding in Evode to 34 per cent. Group profits before taxation and extraordinary items for the year to 1st October 1983 amounted to £2,537,352 compared to last year £1,765,388: an increase of 43.7%. Group sales totalled £46,192,823 compared with £42,731,441: an increase of 8.1%. The stated earnings per share increased by 11.8%. Following the recent acquisition programme the existing organisation structure was consolidated into three major divisions covering the Group’s principle activities.
Each division is the responsibility of a Group Board member.
Adhesives and Sealants Division Managing Director V. Vohralik
Roofing and Insulation Division Managing Director A.A.R. Cobbold
Paints and Plastics Division Managing Director D.S. Winterbottom
The Group turnover increased to £53.3m for the year ended 29th September 1984 compared with £46.1m. Despite this increase in turnover the severe pressure on margins referred to in the interim statement continued and was particularly evident in the Adhesives and Sealants Division. The Group’s profits before tax amounted to £2.3m compared with a figure of £2.5m, a shortfall of 8%; however, the stated earnings per share have increased by 12.3%. To redress this situation, very substantial cost reduction programmes were implemented within the Adhesives and Sealants Division and also Evode Industries Limited in the Irish Republic. The reorganisation costs for this exercise have been included as Extraordinary Items - £1.0m in the Consolidated Profit and Loss Account. At the end of the financial year the Board introduced an S.A.Y.E. Share Option Scheme which was taken up by 26% of all eligible employees. The Group turnover for the year ended 28th September 1985 was £62.9m compared with £53.3m, an increase of 18.1%. The Group profits before tax went up from £2.3m to £2.8m, an increase of 21.9%. Most of the increased sales and profits emanated from the new acquisitions. David Winterbottom was appointed Group Deputy Chief Executive in January 1985 and has taken responsibility for all the Trading Divisions within the Group. During the year Vasek Vohralik, who was Managing Director of the Adhesives and Sealants Division for twelve years, moved into a new role as Group Technical and Development Director to spearhead the search for new technology across the Group. The substantial contribution to improved performance in Adhesives and Sealants Division came from the first stage of the major reorganisation implemented during the second quarter of the financial year. This resulted in the loss of 40 jobs through natural wastage and voluntary redundancy. The major reorganisation of the Division was implemented in October 1985 and this has resulted in a further 79 job losses. Group sales for the year to 29th September 1986 were £70.0m, an increase of 11.4%. The profit for the Group before Taxation amounted to £3.7m, an increase of 31.9%. On the 8th October 1986 Mr A.J. Wain was appointed to the Board as Group Finance Director and Secretary. Nigel Crouch, the Managing Director of the Adhesives and Sealants Division was appointed a Group Director on 17th June 1987. Sales to Customers for the year ended 26th September 1987 were £95.8m, an increase of 10.4%. The profit for the Group before Tax amounted to £6.2m, an increase of 15.2%.
Turnover and Profit by Division: (£’000)
Turnover Profit before tax
1987 1986 1987 1986
Adhesives and Sealants 36,667 32,652 2,198 1,906
Roofing and Insulation 5,330 9,492 (77) 119
Industrial Coatings 12,224 10,358 1,201 910
Plastics Division 23,120 17,512 663 760
Supra 18,478 16,787 2,269 1,672
Other 29 29 (43) 23
95,848 86,830 6,211 5,390
On the 13th October 1987 Her Royal Highness the Princess Royal visited Adhesives and Sealants Division and Group Headquarters to celebrate the 25th anniversary as a public company. John W. Hinks & Co., the Group’s Auditors for almost 40 years, are not seeking re-election. The Twenty-fifth Annual General Meeting held on 21st March 1988 approved the following:
To appoint Messrs Peat Marwick McLintock as auditors.
To increase the Authorised Share Capital of the Company from £9.7m to £11.9m by the creation of 11 million additional ordinary shares of 20p.
At an extraordinary general meeting held on 18th April 1988 the authorised share capital was further increased from £11.9m to £12.8m by the creation of 4.5 million additional ordinary shares of 20p. Sales for the year to 1st October 1988 were £122.4m, an increase of 27.7%. The profits of the Group before taxation amounted to £9.0m, an increase of 45.6%. At an extraordinary general meeting held on 31st March 1989, the authorised share capital was increased from £13.7m to £27.3m by the creation of an additional 42.8 million ordinary shares of 20p each, and 50 million 7p convertible cumulative redeemable preference shares of 10p each. On 28th April 1989 the Board of Evode announced the terms of Increased Offers to acquire all the Chamberlain Phipps shares. On 4th May 1989 the terms of the Increased Offers were recommended unanimously by the Board of Chamberlain Phipps. On 22nd May 1989 the Group’s offer to Chamberlain Phipps p.l.c. ordinary shareholders became unconditional. The ordinary shares of Chamberlain Phipps p.l.c. not already owned by the Group were acquired by the issue and allotment of 22,165,823 ordinary shares with a total value of £40.6m and 40,637,786 7p convertible cumulative redeemable preference shares with a total value of £41.6m. On 22nd May 1989 Andrew H. Simon issued the following notice to all employees of Chamberlain Phipps PLC: “I am pleased to announce that the four Executives of Chamberlain Phipps PLC are joining the Evode Group Board, and this will give the continuity which I am sure you will all welcome. Reporting to Mr David S. Winterbottom; Mr David W.A. Chamberlain is taking over as Managing Director of what for the present we will call the Special Products Division, which will incorporate Evode Adhesives and Sealants Division, Chamtek Division, and Shoe Components Division. In addition Mr Chamberlain will be the non-executive Deputy Chairman of Evode Group p.l.c. Mr G.A.H. Palreyman will be continuing as Managing Director of the Shoe Components Division, and Mr David F. Halewood will continue as the Managing Director of Chamtek Division. Mr Colin Wyman is taking up the new position of Director of Corporate Development, reporting direct to myself”. On 25th September 1989 David S. Winterbottom issued the following notice: “I have to inform you that Mr D.F. Halewood, the Managing Director of Chamtek Division is leaving the employment of the Group with effect from 30th September 1989. Tanner Chemical Co. Inc. will continue to report to Mr D.W.A. Chamberlain. With effect from 1st October Chamberlain Plastics Division will report to Mr E.W. Holdsworth, the Managing Director of the Plastics Division. This leaves the residual companies in Chamtek Division :
Chamtek Hot Melt
Plaskem (VIC) Pty Limited
Chamberlain Italia S.p.A
This Chamtek Division will with effect from 1st October 1989 report through to Mr N.J. Crouch as Managing Director of the Adhesives and Sealants Division.
Sales for the year to 30th September 1989 were £197.4m, an increase of 61.3%. The profits of the Group on ordinary activities before taxation amounted to £11.6m, an increase of 28.1%. The following Press Release was issued on Friday 5th January 1990: “Following the completion of the initial integration of Chamberlain Phipps into the Evode Group a number of changes have been made to the Group Board. Mr Colin Wyman has resigned and Mr David Chamberlain is to resign, both to pursue other business interests. Mr David Halewood has taken early retirement. All the original objectives of the integration programme have now been met and their help during this period was very much appreciated. Mr Tony Palfreyman continues to have responsibility for the Group’s worldwide footwear components interests”. Sales for the year to 29th September 1990 were £271.4m, an increase of 37.5%. The profit of the Group on ordinary activities before taxation amounted to £15.2m, an increase of 31.3%.
Turnover and Profit by Division: (£’000)
Turnover Profit before tax
1990 1989 1990 1989
Adhesives and Sealants 81,124 56,701 5,746 3,478
Industrial Coatings 55,971 46,454 4,963 4,412
Plastics Division 75,960 73,181 6,396 5,034
C.P. Shoe Components 58,376 20,315 4,772 1,984
Other 747 167
Operating Profit 21,877 15,075
Other Income 305 587
Financing Costs (6,971) (4,074)
Group Results 271,431 197,398 15,211 11,588
At the end of the financial year Vasek Vohralik retired from the Board after a career with the Group spanning thirty-four years. On 1st December 1990 Mr H.R. Hatfield, Managing Director of the Industrial Coatings Division, was appointed to the Board. On 1st April Mr John Pratt was appointed to the Board as Group Finance Director and Company Secretary following the retirement of Mr Tony Wain.
Sales for the year to 28th September 1991 were £279.0m, an increase of 3% but after allowing for acquisitions and divestments sales have declined by 6% on 1990. Profit on ordinary activities before taxation amounted to £7.3m, a decrease of 53% on previous year. During the year the Group continued its programme of plant rationalisation, cost reduction programmes and manpower reductions. Since the acquisition of Chamberlain Phipps in May 1989 the total reduction of the UK workforce has been just under 600 or 21%. On 2nd July 1992 David S. Winterbottom issued a Notice, “Following the disposal of the majority of the Shoe Components Businesses of Chamberlain Phipps Division, I am pleased to announce a limited restructing of Evode Group Divisional activities.
INDUSTRIAL COATINGS DIVISION – will constitute, from 1st August, Powder Coatings interests worldwide, plus Supra Acoustics Limited until the reorganisation of that company has been completed. Mr Roger Hatfield will continue as Managing Director of the Division.
NORTH AMERICAN DIVISION – whilst I remain Chairman and Chief Executive Officer of Evode U.S.A. Inc., Roger Hatfield will, from 1st August, 1992, take up responsibility as Chief Operating Officer of Evode U.S.A. Inc. The Presidents of our North American companies will report direct to Roger Hatfield, as will the V.P. of Finance.
POLYMER PRODUCTS DIVISION – this Division will be operational from 1st August, 1992, and will incorporate what has previously been know as the Plastics Division, together with the inclusion of Chamberlain Phipps Coatings Limited, Sterling Technology Limited, and eventually, Supra Acoustics Limited when the re-organisation of that company has been completed.
CHAMBERLAIN PHIPPS (S.A.) LIMITED – until further notice, this company will report direct to myself.”
Sales for the year to 3rd October 1992 were £271.5m, a decrease of 3% but after allowing for discontinued activities an increase of 5% on 1991. Profit on ordinary activities before taxation amounted to £10.2m, an increase of 40% on previous year.
Turnover and Profit by Division: (£m)
Turnover Profit before tax
1992 1991 1992 1991
Adhesives and Sealants 86.7 81.6 3.2 2.1
Polymer Products 136.8 127.0 11.7 10.0
Coatings 28.1 30.8 (0.3) -
Sales 251.6 239.4
Inter-segment sales (11.7) (11.4)
Continuing Activities Sales 239.9 228.0
Discontinued Activities Sales 31.6 51.0
Segmental operating profit 14.6 12.1
Group net costs (0.3) (0.3)
Operating profit from discontinued
Business 1.3 2.3
Other income 0.3 0.4
Financing costs (5.7) (7.2)
Group Results 271.5 279.0 10.2 7.3
On 16th October 1992 Nigel J. Crouch issued a Notice,
“ADHESIVES AND SEALANTS DIVISION
CHANGES AND ACTIONS TO MANAGE THROUGH RECESSION
The underlying trading climate shows no sign of improvement as we start the new Financial Year. I want everyone to be aware that we are determined to manage the Division to significantly improve profitability.
A number of changes are set out below, which will form part of a continuing programme of restructure, rationalisation and cost containment to improve profit performance and strengthen the business for the future.
AT BLAYDON we have had to announce this morning to employees of Tivoli Plus Adhesives Ltd the decision to transfer all operations to Stafford. Regrettably this will mean that over the next few months there will have to be a phased closure of that site.
AT STAFFORD it is vital to the future of the business that the transferred activities and the existing business are operated at a reduced overall cost, with improved productivity and flexibility. There will need to be an extension of shift working, together with limited recruitment to meet the requirements of the combined business.
Sales Administration and site based sales functions are being reorganised to improve profit performance and to sharpen up customer response. Unfortunately this involves some job losses and those individuals affected have been informed with consultations taking place on their personal situation. On 8th January 1993 Andrew H. Simon issued a Notice, “RECOMMENDED OFFER BY LAPORTE FOR EVODE
Early this morning Laporte Plc made an agreed offer for Evode Group p.l.c. The offer values Evode shares at 125.3p each on a share exchange basis and at 115p for cash.
Laporte is the third largest U.K. Chemical Company, with a very fine reputation. Whilst both Evode and Laporte are involved in similar areas in the Speciality Chemicals Industry, there is a relatively small degree of direct sales overlap. This occurs primarily in the field of Adhesives and Sealants where Laporte have a small Company in the U.K. called Sovereign Chemicals and some interests in Adhesives and Sealants in North America.
The combined turnover of the enlarged Group is approaching £1,000 million.
Laporte have given assurances to the Board of Evode that all existing employment rights, including pension rights of all of Evode’s employees and its Subsidiaries will be fully honoured and fulfilled.
David Winterbottom has been invited to join their Executive Management Committee as a Consultant for a period of twelve months and I have been invited to join the Board of Laporte as a Non-Executive Director.
I want to make it quite clear that. Following the initial unwelcome takeover approach by Wassall, I and my colleagues on the Board felt that the acquisition of Evode by Laporte was likely to be the most satisfactory outcome for Evode for its employees and shareholders.”
The acquisition of Evode by Laporte was completed on 5th February 1993.
Laporte sold Evode Adhesives and Sealants to Elf Atochem, a subsidiary company of Elf Group, on 26th December 1996.
The Elf Group was taken over by Total Fina Group in July 2000 and as a consequence Bostik, a subsidiary of Total Fina, took over the management of the Evode Stafford Factory Site.