Profits soar at Crown Paints following Yorkshire-backed buyout

The 200-year old firm is on course to file accounts that will show an EBITDAR (earnings before interest, taxation, depreciation, amortisation and rentals) of 20m on sales of 180m in the year to December 31 2010.

These figures are in comparison with an EBITDAR of 10.5m generated in 2009, following the buyout of the company from Akzo Nobel in October 2008, which was backed by Leeds-based private equity firm Endless.

A number of new product launches have also enabled Crown Paints to increase its UK consumer market share to 19

per cent from 17 per cent in 2009.

More than 1,400 employees work for the company, which is based in Darwen in Lancashire. It has manufacturing sites in Darwen and Hull and distribution centres in Darwen, Warrington and Dublin.

The company believes its improved performance is partly

due to strong cost controls, which have generated substantial improvements in operational efficiencies.

The company said that "strong cash management disciplines" and financial controls have also resulted in cash generation of around 20m, which means the business is now operating without bank debt and with headroom of around 50m.

Brian Davidson, group chief executive of Crown Paints, said: "Our size, independence and entrepreneurial culture mean that we have been able to continually adapt throughout the year in response to and in anticipation of changing market conditions.

"This level of flexibility affords us a unique position as a highly competitive challenger brand in a market that is otherwise dominated by large multinationals.

"But cost control measures alone do not drive growth, and we have continued to invest and innovate during the year in order to maintain sales and increase profitability.

"As well as numerous new product launches, we have also stepped up our global sales and marketing initiatives and invested around 6m in plant, machinery, technological infrastructure and the development of our Crown Decorating Centre network.

"We have also continued to create opportunities for the next generation of manufacturing talent, recruiting 10 young apprentices into the business during the year.

"In 2011, we plan to expand our apprenticeship programme to include adult apprentices.

"We continue to see growth in demand from overseas markets – especially in the Middle East and Africa, where we are actively pursuing further export agreements on the back of several signed during 2010."