Motor components manufacturer and distributor Independent Parts is to expand and set up a new manufacturing division, said Richard Anderson, chief executive, this week.
He said the company will develop a fourth leg, a components rebuild company, around its existing ignition leads arm, Nebo.
The move will be financed by borrowings – it has nil gearing and some £500,000 cash in the bank – rather than paper deals which have diluted the equity recently.
This week’s announcement of a further issue of shares in connection with its acquisition of Autostart, the alternators, starter motors and dynamo rebuild specialist, will be its last.
Profits for the year to March were as expected. The company warned that City profit forecasts – up to £4.5m pre-tax – would not be met. The final figure was £4.21m (£3.71m).
Independent Parts operates in mature markets and Anderson said an `active’ acquistion programme was necessary to improve earnings growth. Its second interest is Tuberex, the exhausts parts maker. Components distributor Veco is the third leg.