Business

Powerflute, the Finnish containerboard manufacturer, today (5 February) started trading its shares on the Finnish section of First North, the alternative marketplace operated by OMX Nordic Exchange Stockholm.

The firm, chaired by Dermot Smurfit, said the listing would complement its existing trading on the Alternative Investment Market (AIM) of the London Stock Exchange, and "increase liquidity" and "improve accessibility" to Powerflute's shares among Nordic investors.

Smurfit said: "First North is an exciting opportunity to attract liquidity from Finland and Sweden, where we and the paper industry in general have strong followings."

Powerflute is the first AIM-listed company on First North, which currently has 130 firms listed and only one other Helsinki company.

The firm said its EBITDA for the 12 months to 31 December 2007, to be announced in March, would be around 60% higher than the £9m (€12.4m) achieved in 2006.

Stockbroker Collins Stewart Europe said it expected a performance in 2008 "well in excess" of the sector and direct competition.

Sales margins are expected to continue to improve this year through price increases, efficiency improvements, cost reductions and further investment.

Smurfit said he hoped Powerflute would make an acquisition before the first anniversary of the firm's flotation on London's AIM on 11 May.

Powerflute produces 300,000 tonnes a year at its paper mill near Kuopio in Finland, operated through its subsidiary Savon Sellu.

The company's semi-chemical fluting product is made primarily from birch wood sourced from Finland and Russia and used mainly to make boxes for fresh and frozen produce.

Other applications include electrical goods and agricultural and automotive products.