Chairman Tony Langley revealed that the privately-owned Langley Holdings received a singificant revenue and net asset boost (€100m net of reorganisation costs) from the “bargain purchase” of Manroland in February 2012.

However, with the German press manufacturer now structured to break-even and having its results included in Langley Holdings’ first-half statement for the first time, Langley revealed that over-capacity in the sector was likely to prevent Manroland making any significant contribution to the group’s bottom line.

“There remains significant over-capacity in the market for these presses and with prices virtually stagnant since 2008, it is not difficult to see why the sector is languishing,” he said.

“The pace of capacity realignment amongst competitors is slow and until such time as supply and demand in the sector are better matched and prices increase, I do not expect to see any significant operating contribution from the division.”

As a result, while group revenues for the six months to 30 June 2013 rose 62% to €386m (June 2012: €238.2m), profit before tax was virtually unchanged at €40.4m (June 2012: €39.3m); year-on-year, the group’s first half pre-tax profit margin has dropped from 16.5% to 10.5%.

Not that this will unduly concern Langley, as the group (which is debt-free) still expects to record a full year pre-tax profit €80m on its enlarged €850m forecast revenue (of which approximately €320m will come from Manroland).

Manroland’s orders on hand at 30 June totalled €312.5m, which is expected to rise to €318.6m at the year end. In addition, Manroland was said to have “a strong cash position” and to be “trading without need of the group’s financial support”.

Langley Holdings specialises in buying “under-performing or distressed capital equipment businesses with a strong market position and reputation” and re-organising them for the long term. The company pointed out that it has yet to sell any of the businesses it has bought.