Half Yearly Report

RNS Number : 1259I
Plastics Capital PLC
07 December 2015
 

 

 

Plastics Capital plc

("Plastics Capital", the "Company" or the "Group")

 

Interim Results for the six months ended 30 September 2015

 

Plastics Capital (AIM: PLA) the niche plastics products manufacturer, announces the Company's unaudited interim results for the six months ended 30 September 2015, which are broadly in line with management expectations.

 

Financial highlights

 

Six months ended

30 September 2015

£'000

Six months ended

30 September 2014

£'000

 

% Change

Revenue

24,489

16,537

+48.1%

EBITDA*

2,464

2,200

+12.0%

Profit before tax*

1,526

1,547

-1.4%

Earnings per share*+  (p)

4.0

4.6

-13.6%

Dividend per share (p)

1.46

1.33

+9.8%

* excluding amortisation, exceptional costs, unrealised foreign exchange translation and derivative gains / losses.

+ applying an expected tax charge of 8% and based on the weighted average number of shares in issue in the year.

 

Operational highlights

·     Revenue up 48%, driven by prior year acquisition and ongoing strong performance of Flexipol

·     At constant exchange rates and polymer prices:

EBITDA up 29%

Earnings per share up 7%

·     Flexipol now successfully integrated, performing strongly and starting to benefit from synergies and cross-selling opportunities across the Group

·     Bearings sales up 5% due to momentum from prior business wins and key account growth

·     Excellent new business wins in hydraulic hose mandrels, increasing market share and  compensating for softer industrial end markets

 

 

Commenting on these results, Faisal Rahmatallah, Executive Chairman, said:

"I am pleased to report excellent progress in our films and bearings businesses, where sales and profit growth has been good.  Order books in these business areas are strong and we anticipate a significantly improved performance in the second half year, which we believe will be further assisted by improving foreign exchange hedge rates and raw material prices.  The Board therefore expects the Group to continue to trade in line with expectations for the rest of the financial year."

 

 

 

 

 

Plastics Capital plc

Tel: 020 7978 0574

Faisal Rahmatallah, Executive Chairman

Nick Ball, Finance Director

 

 

Cenkos Securities plc

Tel: 020 7397 8900

Mark Connelly

Callum Davidson

 

 

Allenby Capital

Tel: 020 3328 5656

David Hart

Katrina Perez

 

 

Walbrook PR Ltd

Tel: 020 7933 8780

Paul Cornelius

Helen Cresswell

Plastics@walbrookpr.com

 

 

 

Notes to Editor

Plastics Capital is a consolidator of plastics products manufacturers focused on proprietary products for niche markets.  The Group has five factories in the UK, one in Thailand, two in China and sales offices in the USA, Japan, China and India.  Approximately 40 per cent. of sales are exported to over 80 countries worldwide.  Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness.  The Group has approximately 450 employees.

 

Further information can be found on www.plasticscapital.com

 

 

 

Chairman's Statement

 

Financial Review

 

Following the acquisition of Flexipol, we have now reclassified the Group into two operating Divisions:

1.    Films; including Palagan and Flexipol

2.    Industrial; including BNL, Bell and C&T Matrix.

 

Palagan and Flexipol are complementary businesses operating substantially in the UK market for high strength film packaging whereas BNL, Bell and C&T Matrix each make and sell highly engineered plastics products on a global basis.

 

Films Division

The Films Division accounted for approximately 57% of Group sales in the period under review including the first full half-year contribution from Flexipol, which has performed ahead of our original expectations.  We have also commenced the process of identifying and implementing synergies between Palagan and Flexipol and anticipate this exercise to deliver over £0.5m of incremental annual operating profit from this division over the next 12-18 months as both cost savings and additional sales flow through.

 

Profitability in the half-year has been negatively affected by the increase in raw material prices following the substantial fall in polymer prices in the final quarter of FY14-15.  Rising raw material prices generally create a short term narrowing of margins as film selling prices are renegotiated.  Importantly, raw material prices have now stabilised as we move towards 2016.

 

Comparing H1 2015-16 with H1 2014-15 on a pro-forma basis for the Films Division (i.e. including Flexipol in the prior year):

·     Sales volume is up 2.0%

·     EBITDA is up 8.3% after adjusting for the increase in raw material prices.

 

Industrial Division

 

In the period under review, sales in the Industrial Division, which accounted for approximately 43% of Group sales, of which 93% are generated outside the UK, were similar to the same period last year.  Underlying profitability, after adjusting for foreign exchange, has also been similar to last year.  I believe that this is a satisfactory performance given the significant exposure to markets that have been very weak over the last 12 months, such as the oil & gas and mining sectors, and the emerging economies of Asia, Africa and South America.

 

Particularly encouraging has been the improvement in our bearings business, where sales are up 5% compared to the prior half year.  This has been partly due to prior period new project wins flowing through into increased production as well as the development of important key accounts in the swimming pool cleaner and poultry processing industries.  Our mandrel business has also performed well with little change on prior year sales due to new business wins offsetting softer end markets.  I believe that these will bring significant additional volume as and when the overall market recovers.

 

It is important to note that, following the acquisition of Flexipol in November 2014, we have increased our central overhead to enable us to continue to develop the enlarged business.  Our central team now includes a Divisional Director for the Films Division, a Group Strategy Implementation Manager and a Group Legal Director.  We also have a Regional Managing Director and Finance Director based in China.  The total cost increase over this period is approximately £0.5m annually, which has held back profit growth.  However, the Board believes that this core team is now of a size that can guide and manage the Group's development to significantly greater scale and that this represents an appropriate investment towards the future development of the Group.

 

 

Dividend

 

To reflect our confidence in the future of the business, the Company is pleased to announce that it intends to pay on 7 January 2016 an increased interim dividend of 1.46p (H1 2014-15: 1.33p) to all shareholders in respect of the six month period ended 30 September 2015.  This represents a 10% improvement on the prior year.  The record date for the dividend is 18 December 2015 and the associated ex-dividend date is 17 December 2015.

 

 

Growth

 

We have launched a five year plan with the target of doubling EBITDA over that period. This strategic goal links to the LTIP Growth Share awards announced on 2nd October 2015 for the senior executive teams across the Group's subsidiaries.  Within the five year plan, we have a number of key initiatives that we believe will drive this growth.  These initiatives are continually monitored for progress and are reviewed at regular intervals by the Board.

 

In the Films Division, the most important initiatives in terms of impact are:

 

·     Expanding the sales of specialist patented products.  To enable full exploitation of products such as "Rip and Flow" and "Rip and Tear", 850 tonnes of additional capacity, which is roughly 7% of the Divisional total, has already been installed in the first half of the financial year for this purpose and a new sales person has been appointed.  The expected additional sales are already coming through.

·     Introduction of a new "ultra-high strength wide-width" range of films.  A new conversion line is being installed in H2 2015-16 which will, together with some innovative extrusion engineering, enable the new range to be produced.

·     Cross-selling.  Palagan and Flexipol have complementary product capabilities and there is significant potential to optimise margins and output across both businesses by cross-selling what each business does best.  Approximately £1m of business has been identified for transfer and the process of implementing this has started and is expected to take a few months.

 

 

 

In the Industrial Division, the major initiatives are:

 

·     Bringing already won Bearings business successfully into production. Our bearings business has extremely long project gestation periods, with up to 5 years between tool order and product sales at full run rate.  The current pipeline of business that is won but not yet into full production stands at £4.3m of annualised sales value, all of which should come through over the next five years.  This is an improvement of £0.8m over the position at year end.

·     Building on the investment made so far in China. Our sales teams in Shanghai and Shenzen have identified a number of bearings and mandrels opportunities in China and are close to a number of breakthroughs.  In addition, we have developed a catalogue range of injection moulded standard radial bearings that we believe will be particularly suitable for the Chinese market.  These are expected to enter production in H1 2016-17 and should give us a presence in an important part of the market that has been difficult to access to date.

·     Increasing the Mandrel business development resource. Our mandrel business has a highly successful business model based on technical expertise and a wide range of solutions for hose manufacturers - the list of potential prospects is substantial.  We have recently recruited additional sales and R&D resource in this business to enable us to deepen our competencies and to exploit this opportunity fully.

·     Forward integration in Matrix. There is an opportunity in our creasing matrix activities for profitable growth by getting closer to box-makers and die-makers in the packaging and print consumables industry by moving forward into consumables distribution.  We believe this would be best done through investments in our distributors, many of whom are looking for investment and succession.  We are currently exploring opportunities and meanwhile are establishing our own distribution activities in the UK, where growth has been strong since we recruited our key competitor's head of sales.

 

Obviously any programme of initiatives, such as those listed above, have risks associated to their achievement. We face the possibility of customer and/or supplier delays and unforeseen technical difficulties in some areas, notwithstanding the management processes we have put in place to rectify such occurrences.  Attrition (or customer losses) is also a factor that we have considered and made allowances for, but this allowance could be insufficient.  Finally, the most potent risk is what happens in the global economy. Our working assumption is for marginal growth (c.2-3%) over the five year period, but recent experience has shown that even this may be somewhat optimistic.

 

 

Acquisitions

 

We are very pleased with the progress made at Flexipol since its acquisition nearly 12 months ago.  The business has been fully integrated into our Group financial and management procedures.  We have appointed a Managing Director and Finance Director, promoted the Operations Manager to the Board and recruited two new sales people.  We have found the personnel at Flexipol to be highly motivated, enthusiastic and enterprising.  Co-operation between the Flexipol and Palagan operational and sales teams has been excellent and is leading to the achievement of the synergies referred to above.  Sales volumes and profitability have increased and potential for growth over the coming years has been confirmed.

 

As regards further acquisitions, a number of good opportunities have presented themselves in the last 3-6 months. We remain enthusiastic to add businesses that are complementary to our existing ones, and meet our other criteria in terms of size, profitability and cash flow.  We are hopeful that we can bring one or more to fruition over the next 12 months.

 

 

Outlook

 

We are seeing a significant improvement in our order books and anticipate improved financial performance in the second half due to the seasonality that now applies to the Group and as the foreign exchange and polymer price situation normalises.  We also expect the pipeline of new business to enter production at a more rapid rate in the Industrial division.  We anticipate that our five year plan and the associated management processes will continue to drive the business forward notwithstanding weakness in some of our end markets.  The Board therefore remains confident about the future growth of the Group.

 

 

 

Faisal Rahmatallah

Executive Chairman 

 

 

 

Plastics Capital plc

Consolidated Income Statement

for the six months ended 30 September 2015

 

 

 

 

Before foreign exchange & exceptional items 

Foreign exchange impact on derivative and loans

Exceptional items

Total

 

Before foreign exchange & exceptional items

Foreign exchange impact on derivatives and loans

Exceptional items

Total

 

 

2015

2015

2015

2015

 

2014

2014

2014

2014

 

Note

£'000

£'000

£'000

£'000

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

24,489

-

-

24,489

 

16,532

-

-

16,532

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(16,827)

(142)

-

(16,969)

 

(10,894)

201

-

(10,693)

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

7,662

(142)

-

7,520

 

5,638

201

-

5,839

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(1,280)

-

-

(1,280)

 

(1,056)

-

-

(1,056)

 

 

 

 

 

 

 

 

 

 

 

Administration expenses

 

(5,202)

-

(222)

(5,424)

 

(3,642)

-

(55)

(3,697)

 

 

 

 

 

 

 

 

 

 

 

Other income

 

15

-

-

15

 

8

-

-

8

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

1,195

(142)

(222)

831

 

948

201

(55)

1,094

 

 

 

 

 

 

 

 

 

 

 

Financial income

5

-

235

-

235

 

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

Finance expense

5

(305)

-

-

(305)

 

(202)

(366)

-

(568)

 

 

 

 

 

 

 

 

 

 

 

Net financing (costs) / income

 

(305)

235

-

(70)

 

(202)

(366)

-

(568)

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

890

93

(222)

761

 

746

(165)

(55)

526

 

 

 

 

 

 

 

 

 

 

 

Tax

6

(127)

-

-

(127)

 

(159)

-

-

(159)

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

763

93

(222)

634

 

587

(165)

(55)

367

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange translation differences

 

(172)

-

-

(172)

 

15

-

-

15

 

Total comprehensive income

 

591

93

(222)

462

 

602

(165)

(55)

382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

Basic

8

 

 

 

1.8p

 

 

 

 

1.2p

Diluted

8

 

 

 

1.8p

 

 

 

 

1.2p

 

 

 

Plastics Capital plc

Consolidated Income Statement (continued)

for the year ended 31 March 2015

 

 

 

 

 

 

 

 

 

Audited

Before foreign exchange & exceptional

items

Audited

Foreign exchange impact on derivatives and loans

Audited

Exceptional items

Audited

Total

 

 

 

 

 

 

 

2015

2015

2015

2015

 

Note

 

 

 

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

39,576

-

-

39,576

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

(25,838)

242

-

(25,596)

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

13,738

242

-

13,980

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

(2,210)

-

-

(2,210)

 

 

 

 

 

 

 

 

 

 

 

Administration expenses

 

 

 

 

 

(9,141)

-

(1,130)

(10,271)

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

12

-

-

12

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

 

 

 

 

 

2,399

242

(1,130)

1,511

 

 

 

 

 

 

 

 

 

 

 

Financial income

5

 

 

 

 

 

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

Finance expense

5

 

 

 

 

 

(480)

(1,179)

-

(1,659)

 

 

 

 

 

 

 

 

 

 

 

Net financing costs

 

 

 

 

 

 

(480)

(1,179)

-

(1,659)

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) before tax

 

 

 

 

 

1,919

(937)

(1,130)

(148)

 

 

 

 

 

 

 

 

 

 

 

Tax

6

 

 

 

 

 

(102)

-

-

(102)

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) for the period

 

 

 

 

1,817

(937)

(1,130)

(250)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange translation differences

 

 

 

 

218

-

-

218

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income/(loss)

 

 

 

 

2,035

-

-

(32)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

Basic

8

 

 

 

 

 

 

 

 

(0.8) p

Diluted

8

 

 

 

 

 

 

 

 

(0.8)p

 

 

Plastics Capital plc

Consolidated Balance Sheets

           

 

 

Unaudited

As at

30

September

2015

 

Unaudited

As at

30

September

2014

 

Audited

As at

31

March

2015

 

 

£000

£000

£000

Non-current assets

 

 

 

 

Property, plant and equipment

 

7,784

5,064

8,669

Intangible assets

 

23,851

20,551

24,404

 

 

             

             

             

 

 

31,635

25,615

33,073

 

 

             

             

             

Current assets

 

 

 

 

Inventories

 

4,515

3,358

4,006

Trade and other receivables

 

11,539

7,962

11,139

Other financial assets

 

-

76

-

Cash and cash equivalents

 

3,991

2,396

4,437

 

 

             

             

             

 

 

20,045

13,792

19,582

 

 

             

             

             

Total assets

 

51,680

39,407

52,655

 

 

             

             

             

 

 

 

 

 

Current liabilities

 

 

 

 

Interest-bearing loans and borrowings

 

5,798

4,232

5,143

Trade and other payables

 

8,665

5,333

8,788

Corporation tax liability

 

486

447

549

 

 

             

             

             

 

 

14,949

10,012

14,480

 

 

             

             

             

Non-current liabilities

 

 

 

 

Interest-bearing loans and borrowings

 

10,057

6,180

10,694

Other financial liabilities

 

83

-

408

Deferred tax liabilities

 

724

350

724

 

 

             

             

             

 

 

10,864

6,530

11,826

 

 

             

             

             

Total liabilities

 

25,813

16,542

26,306

 

 

             

             

             

Net assets

 

25,867

22,865

26,349

 

 

             

             

             

Equity attributable to equity holders of the parent

 

 

 

 

Share capital

 

353

302

353

Share premium

 

20,888

16,570

20,888

Reverse acquisition reserve

 

2,640

2,640

2,640

Translation reserve

 

462

431

634

Capital redemption reserve

 

(200)

(200)

(200)

Retained earnings

 

1,724

3,122

2,034

 

 

             

             

             

Total equity

 

25,867

22,865

26,349

 

 

             

             

             

 

 

 

Plastics Capital plc

Consolidated Cash Flow Statements

 

 

Unaudited

Six months

ended

30 September

2015

Unaudited

Six months

ended

30

September

2014

Audited

Year

ended

31

March

2015

 

 

£000

£000

£000

 

 

 

 

 

Profit / (loss) after tax for the period

 

634

367

 

(250)

Adjustments for:

 

 

 

 

 Income tax adjustment

 

127

159

102

 Depreciation, amortisation and impairment

 

1,411

1,093

2,616

 Financial income

 

(235)

-

-

 Financial expense

 

305

568

1,659

 Gain on disposal of plant, property and equipment

 

-

-

13

 

 

 

 

 

Changes in working capital:

 

 

 

 

 (Increase) / Decrease in trade and other receivables

 

(399)

249

53

 (Increase) / Decrease in inventories

 

(509)

(92)

194

  (Decrease) / Increase in trade and other payables

 

(123)

(1,028)

(423)

 

 

             

             

             

Cash generated from operations

 

1,211

1,316

3,964

 

 

 

 

 

Interest paid

 

(230)

(160)

(374)

Income tax paid

 

(190)

-

(254)

 

 

             

             

             

Net cash from operating activities

 

791

1,156

3,336

 

 

             

             

             

Cash flows from investing activities

 

 

 

 

Acquisition of subsidiary (net of cash acquired)

 

-

(122)

(8,847)

Acquisition of property, plant and equipment

 

(1,223)

(570)

(977)

Dividends received

 

14

8

12

Interest received

 

-

-

-

Proceeds from disposal of plant, property and equipment

 

1,400

-

23

Development expenditure capitalised

 

(125)

(125)

(250)

 

 

             

             

             

Net cash from investing activities

 

66

(809)

(10,039)

 

 

             

             

             

Cash flows from financing activities

 

 

 

 

Proceeds from the issue of share capital

 

-

-

4,736

Net proceeds from new loan

 

-

-

5,281

Change in borrowings

 

(1,543)

(481)

(1,700)

Dividends paid

 

(944)

(604)

(1,075)

 

 

             

             

             

Net cash from financing activities

 

(2,487)

(1,085)

7,242

 

 

             

             

             

Increase in cash and cash equivalents

 

(1,630)

(738)

539

Cash and cash equivalents at 1 April

 

4,437

3,134

3,134

Overdraft at 1 April

 

(3,908)

(3,144)

(3,144)

 

 

             

             

             

Cash and cash equivalents at 30 September

and 31 March

 

 

(1,101)

 

(748)

 

529

 

 

             

             

             

Plastics Capital plc

Consolidated statement of changes in equity

 

 

Share

capital

Share

premium

Translation reserve

Reverse

acquisition

reserve

Capital redemption reserve

Retained

earnings

Total

 

 

£000

£000

£000

£000

£000

£000

£000

 

 

 

 

 

 

 

 

 

 

Balance at 31 March 2014

302

16,570

416

2,640

(200)

3,359

23,087

 

 

             

             

             

             

             

             

             

 

Profit or loss

-

-

15

-

-

367

382

 

Dividends paid

-

-

-

-

-

(604)

(604)

 

 

              

              

              

              

              

             

                

 

 

Balance at 30 September 2014

302

16,570

431

2,640

(200)

3,122

22,865

 

 

             

             

             

             

             

             

            

 

Share issue

51

4,318

-

-

-

-

4,369

 

Profit or loss

-

-

203

-

-

(617)

(414)

 

Dividends paid

-

-

-

-

-

(471)

(471)

 

 

             

             

             

              

             

             

 

Balance at 31 March 2015

353

20,888

634

2,640

(200)

2,034

26,349

 

 

             

             

             

             

              

             

             

 

Profit or loss

-

-

(172)

-

-

634

462

 

Dividends paid

-

-

-

-

-

(944)

(944)

 

 

             

             

             

             

             

             

           

 

Balance at 30 September 2015

353

20,888

462

2,640

(200)

1,724

25,867

 

 

             

             

             

             

             

             

           

 

 

 

 

1              Basis of preparation and accounting policies

 

Basis of preparation

 

The interim financial information has been prepared on the basis of the recognition and measurement requirements of adopted IFRSs as at 30 September 2015 that are effective (or available for early adoption) as at 31 March 2016.  Based on these adopted IFRSs, the directors have applied the accounting policies, as set out below, which they expect to apply to the annual IFRS financial statements for the year ending 31 March 2016.

 

However, the adopted IFRSs that will be effective (or available for early adoption) in the annual financial statements for the period ending 31 March 2015 are still subject to change and to additional interpretations and therefore cannot be determined with certainty.  Accordingly, the accounting policies for that annual period will be determined finally only when the annual financial statements are prepared for the period ending 31 March 2016.

.

 

Accounting policies

 

The accounting policies applied to the Interim Results for six months ended 30 September 2015 are consistent with those of the Company's annual accounts for the year ended 31 March 2015.

 

Going concern

 

The Financial Reporting Council issued "Going Concern and Liquidity Risk: Guidance for Directors of UK Companies" in October 2009 and the Directors have considered this when preparing the financial statements.  These have been prepared on a going concern basis and the Directors have taken steps to ensure that they believe the going concern basis of preparation remains appropriate.

 

 

 

2              Reconciliation of financial highlights table to the consolidated income statement

 

 

 

Unaudited

Six months to

30 September

2015

Unaudited

Six months to

30 September

2014

 

 

 

Change

 

 

£000

£000

%

 

 

 

 

 

Revenue

 

24,489

16,532

48.1%

Gross profit

 

7,520

5,839

28.8%

Operating profit

 

831

1,094

-24.0%

 

 

 

 

 

Add back: Exceptional cost

 

222

55

 

Add back: Amortisation

 

703

559

 

Add back: Depreciation

 

708

492

 

 

 

 

 

 

EBITDA before exceptional costs

 

2,464

2,200

12.0%

 

 

 

 

 

Profit before tax

 

761

526

45.0%

 

 

 

 

 

Add back: Amortisation

 

703

559

 

Add back: Exceptional costs

 

222

55

 

Add back: Capitalised deal fee amortisation

 

75

42

 

Add back: Unrealised foreign exchange loss/(gain)

 

44

71

 

Add back: Unrealised derivative loss/(gain)

 

(279)

294

 

 

 

 

 

 

Profit before tax*

 

1,526

1,547

-1.4%

 

 

 

 

 

Taxation

 

(127)

(159)

 

 

 

 

 

 

Profit after tax*

 

1,398

1,388

0.8%

Basic adjusted EPS*+

 

4.1p

4.6p

-12.3%

Basic EPS

 

1.8p

1.2p

53.1%

Capital expenditure

 

1,223

570

114.6%

Net Debt

 

11,864

8,018

48.0%

             

* excluding amortisation, exceptional costs, unrealised foreign exchange translation and unrealised derivative gains/losses

+ applying an expected tax charge of 8% and based on the average number of shares in issue in the year

 

 

3              Operating segment information

 

The following summary describes the operations in each of the Group's reportable segments:

·     Films - includes industrial films

·     Industrial - includes hose mandrel, creasing matrix and plastic bearings

 

 

 

Industrial

 

Films

Unallocated and reconciling items

 

Total

 

 

 

 

 

 

Unaudited

Six months to

30 September

2015

Unaudited

Six months to

30 September

2015

Unaudited

Six months to

30 September

2015

Unaudited

Six months to

30 September

2015

 

£000

£000

£000

£000

 

 

 

 

 

External sales*

10,503

13,984

-

24,487

Profit before tax**

(124)

223

662

761

Depreciation and amortisation

438

264

709

1,411

 

_______

_______

_______

______

 

 

 

 

 

 

 

Unaudited

Six months to

30 September

2014

 

Unaudited

Six months to

30 September

2014

 

Unaudited

Six months to

30 September

2014

 

Unaudited

Six months to

30 September 2014

 

£000

£000

£000

£000

 

 

 

 

 

External sales*

10,532

6,000

-

16,532

Profit / (loss) before tax**

289

172

65

526

Depreciation and amortisation

430

55

566

1,051

 

_______

_______

_______

_______

 

 

 

 

 

 

 

 

 

 

 

Audited

Year to

31 March

2015

Audited

Year to

31 March

2015

Audited

Year to

31 March

2015

Audited

Year to

31 March

2015

 

£000

£000

£000

£000

 

 

 

 

 

External sales*

20,934

18,642

-

39,576

Profit / (loss) before tax**

(107)

1,185

(1,226)

(148)

Depreciation and amortisation

898

283

1,433

2,614

 

_______

_______

_______

_______

 

 

 

 

 

* All revenue is attributable to external customers, there are no transactions between operating segments

** Profit before tax for unallocated and reconciling items is analysed on Page 15.

 

 

 

 

3              Operating segment information (continued)

 

Reconciliation of reportable segment revenue

 

 

 

Unaudited

Six months to 30 September 2015

£000

 

Unaudited

Six months to 30 September 2014

£000

Audited

Year to

31 March

2015

£000

Films

 

 

 

 

  High strength film packaging

 

13,984

6,000

18,642

Industrial

 

 

 

 

  Packaging consumables

 

3,312

3,674

7,149

  Plastics rotating parts

 

5,263

4,994

10,359

  Hydraulic hose consumables

 

1,928

1,864

3,426

 

 

             

             

             

Turnover per consolidated income statement

24,487

16,532

39,576

 

 

             

             

             

 

 

Reconciliation of reportable segment profit

 

 

 

 

Unaudited

Six months to 30 September 2015

£000

 

 

Unaudited

Six months to

30 September 2014

£000

 

 

Audited

Year to

31 March

2015

£000

 

 

 

 

 

Total profit for reportable segments

 

99

461

1,078

 

 

            

            

            

Unallocated amounts:

 

 

 

 

  Amortisation

 

(703)

(559)

(1,405)

  Unrealised (losses)/gains on derivatives

 

235

(294)

(1,179)

  Management charge income

 

2,125

1,475

3,225

  FX hedge gain/(loss) on forward contracts

 

(142)

201

242

  Plastics Capital Trading Ltd and Plastics Capital plc costs

 

(539)

(594)

(991)

  Net interest costs

 

(122)

(160)

(354)

  Deal fee amortisation

 

(75)

(42)

(106)

  Exceptional costs

 

(195)

(55)

(719)

  Other

 

78

93

61

 

 

            

            

             

Consolidated profit before income tax

761

526

(148)

 

 

            

            

              

           

 

 

 

4              Exceptional items

 

Administrative Expenses

 

 

Unaudited

Six months to 30 September 2015

£000

 

Unaudited

Six months to 30 September 2014

£000

Audited

Year to

31 March

2015

£000

 

 

 

 

 

Company set up costs

 

-

-

 

Redundancy & recruitment costs

 

165

-

114

Acquisition and legal costs

 

-

55

909

Other

 

57

-

105

 

 

            

            

           

 

222

55  

1,130

 

 

            

            

           

             

 

 

5              Financial income and expenses

 

 

 

 

Unaudited

Six months to

30 September

2015

£000

 

Unaudited

Six months to

30 September

2014

£000

 

Audited

Year to

31 March

2015

£000

Financial expenses:

 

 

 

 

 Bank interest

 

230

160

374

 Amortisation of capitalised deal fees

 

75

42

106

 Loss on derivatives used to manage interest rate risk

-

-

-

 

 

             

             

             

Financial expenses

 

305

202

480

 

 

             

             

             

Financial income and expenses included within foreign exchange:

 

 

 Net foreign exchange gains / (losses)

 

(44)

(72)

(401)

 Unrealised gains / (losses) on derivatives used to manage foreign exchange risk

279

(294)

(778)

 

 

             

             

             

Exceptional items

 

235

(366)

1,179

 

 

             

             

             

 

 

6              Taxation

 

The taxation charge is calculated by applying the Directors' best estimate of the annual tax rate for the profit for the period.

 

 

7              Dividends

 

The Directors recommend the payment of an interim dividend of 1.46p per share (30 September 2014: 1.33p).

 

 

 

8              Earnings per share

 

 

Unaudited

Six months to

30 September

2015

Unaudited

Six months to

30 September

2014

Audited

Year to

31 March

2015

 

£000

£000

£000

Numerator

 

 

 

Profit / (loss) for the period

634

367

(250)

 

 

 

 

Denominator

 

 

 

Weighted average number of shares used in basic EPS

35,344,573

30,242,532

31,943,212

Weighted average number of shares used in diluted EPS

35,444,573

30,242,532

32,043,212

 

 

 

 

 

 

 

 

Basic earnings per share (total)

1.8p

1.2p

(0.8)p

Diluted earnings per share (total)

1.8p

1.2p

(0.8)p

 

 

 

 

 

 

9              Accounts

 

Copies of the interim accounts may be obtained from the Company Secretary at the Registered Office of the Company: London Heliport, Bridges Court Road, London, SW11 3BE.

 

 

 


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