In an announcement Tuesday, Edinburgh based firm, Forth Ports said it is mulling the acquisition of other port businesses, coming after it prevented a takeover bid by its stakeholders. The firm reported a 29% hike in its interim profits and reported that it is planning acquisitions to bolster its position. Forth Ports was the target of a £640 million takeover bid that was made by shareholders three months ago.

It reported a posting of £16 million pre-tax profit for the period ended 30th June. According to the firm, its impressive profit performance was a result of cost reduction measures and healthy container volumes. Forth Ports controls ports such as Tilbury in London and Grangemouth, Dundee and Leith in Scotland.

Charles Hammond, Forth Ports chief executive said in a statement that the firm has gained from the variety and combination of its business model. Other than that, the firm had also gained considerably from the associated secure revenue streams attached to its mode of business, i.e. variety and wider combination, said Hammond. He further added that the firm’s current trading has been impressive and the ports’ project plans are also becoming reinforced.  

As such, Hammond said Forth Ports is currently looking at opportunities to acquire or manage other port businesses. The firm recently forwarded applications for onshore wind installations and biomass plants at a number of its ports in Scotland. Other than these applications, Forth Ports is also planning to forward two additional biomass applications sometime later this year as part of a strategic joint venture with energy firm, Scottish and Southern Energy.

Forth Ports turned down a takeover bid from a trio of its shareholders. Back then, the shareholders had offered 1,400 pence per share in cash and that valued the firm at about £640 million. That takeover bid came as the third attempt at a takeover from the Northstream consortium but Forth Ports rejected it, arguing that it undervalued the company.

Forth Ports employs 1,200 people and owns seven ports, including Tilbury in London and Grangemouth and Leith in Scotland. Forth Ports plc is one of the largest port operators in the United Kingdom. It is based in Edinburgh, Scotland, which is situated on the Firth of Forth. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

25 Aug 2010.