Interim Results

RNS Number : 3802X
Plastics Capital PLC
06 December 2010
 



For Immediate Release

6 December 2010

 

Plastics Capital plc

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

 

Interim Results for the six months ended 30 September 2010

 

Plastics Capital plc (AIM: PLA) the niche plastics products manufacturer, today announces its interim results for the six months ended 30 September 2010.

 

The consolidated financial information has been prepared using International Financial Reporting Standards as adopted by the EU ("IFRS").

 

Financial highlights


Six months ended

30 September 2010

£'000

Six months ended

30 September 2009

£'000

 

% Change

Revenue

16,302

12,883

+26.5%

Gross Profit

6,128

5,057

+21.2%

EBITDA

2,692

2,070

+30.0%

Profit before tax

2,100

1,496

+40.4%

Adjusted EPS*

7.0p

4.8p

+45.8%

Net Bank Debt

14,273

17,641

-19.1%

*Based on 27.4m shares currently in issue

 

Operational highlights

 

·    Strong turnover growth driven by new business wins;

·    Volumes almost returned to levels before the economic crisis;

·    Improved new business activity helped by global economic recovery;

·    Good profitability in all Group subsidiaries;

·    Geographic expansion continues;

o international sales represent 62% of total

o direct sales presence established in India and China;

 

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

 

"These results reflect the significant success of the Group in winning new business over the last 18 months as well as recovery since the economic crisis.  Cash flow has been strong and bank debt has reduced significantly.  We are confident that our continued focus on developing new accounts, new products and on expanding into new territories will lead to excellent organic growth this year and beyond."



 

Plastics Capital plc

Faisal Rahmatallah, Executive Chairman

Nick Ball, Finance Director

 

Tel: 020 7326 8423

Cenkos Securities

Stephen Keys

Liz Bowman

 

Tel: 020 7397 8900

Buchanan Communications  

Richard Darby

Christian Goodbody

 

Tel: 020 7466 5000

 

 

 

 

Notes to Editors

Plastics Capital is a consolidator of plastics products manufacturers focused on proprietary products for niche markets.  The Group has four factories in the UK, one in Thailand and sales offices in the USA, Japan, India and China.  Approximately 62 per cent of sales are outside the UK going to over 70 countries worldwide.  Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness.  The Group has approximately 290 employees.

 

Further information can be found on www.plasticscapital.com



Chairman's Statement

 

Financial Review

 

Overall performance is in line with expectations with good profitability in all Group subsidiaries.

 

Compared to the same period last year, on a statutory accounting basis the Group has:

increased revenue by 27% to £16.3 million - 62% of revenue is represented by international sales;

increased earnings before interest, tax, depreciation and amortisation (EBITDA), by 30% to £2.7 million;

increased profit before tax by 40% to £2.1m; and

increased basic earnings per share (EPS) by 45% to 7.0p.

 

The strong improvement in profitability reflects two key factors: first, excellent volume growth resulting from new business wins and the economic recovery; and second, the absence of exceptional costs that impacted the Group last year in the immediate aftermath of the economic crisis. 

 

The Group benefited in H1 09/10 from a particularly favourable $/£ exchange rate. On a constant $/£ currency basis ($/£1.64), the underlying profitability improvement is extremely strong.  Underlying profitability excludes amortisation, exceptionals and unrealised foreign exchange gains/losses and applies a 28% charge for corporation tax.  On an underlying basis, the Group has:

increased earnings before interest, tax, depreciation and amortisation (EBITDA) by 37% to £2.8m,

increased profit before tax by 89% to £1.8m; and

increased earnings per share by 85% to 4.6p. 

These improvements highlight the excellent progress made over the last twelve months.

 

Operating cash flow has continued to be strong.  EBITDA of £2.7m has converted into operating cash flow of £2.3m, equating to 85% cash conversion over the half year.  This high level of cash conversion highlights excellent working capital management over the half year and the relatively low capital intensity of our businesses.

 

Net bank debt has meanwhile reduced by 19% to £14.3m, benefiting not only from the cash conversion set out above, but also from the weakening of the euro, which has reduced the value of the Group's euro denominated loans.  Now less than 2.7 times annual run-rate EBITDA and reducing, the Group's debt is much less significant than it was 12 months ago.

 

Volume Growth

 

New customers and the introduction of new products have contributed to a 21% year-on-year volume increase and a 27% increase in turnover.  The percentage difference between volume and value of sales is primarily accounted for by the "pass-through" of raw material price increases that have been a feature of the market in the last six months.  

 

The most pleasing and significant driver of the volume growth achieved in H1 10/11 is that 52% of the increase arises from net new business won over the last eighteen months.  During the global downturn, the Group's sales resource was strengthened so contributing to 18 major new account wins over the last 18 months.  Our sales teams have been significantly expanded and restructured through the recession and this is having a major impact on our ability to generate leads and convert prospects into new customers.

 

In aggregate, volumes are now almost back to the level that applied to the period before the economic crisis impacted with new business activity being helped by the global economic recovery.  For our businesses, the recovery has not been smooth but has displayed quarters of very significant growth followed by quarters where the recovery appears to have stalled.  

 

Raw Materials

 

The half year under review has seen upward pressure on raw material prices for both the engineering and commodity grades.  This has been caused by stock shortages rather than issues relating to the oil price.  In general, price increases have been modest and have been contained by effective management and by the fact that raw materials are a relatively small percentage of our cost structure. 

 

The key exception has been polyethylene, which is used by our specialist film packaging business ("Palagan"), and for which prices increased last year and continued to do so at the beginning of the half year before stabilising towards the end of the half year.  Margins had deteriorated during the last financial year due to the delay between input price increases being received and sales price increases being implemented.  A large part of this margin erosion has now been recovered during H1 10/11 as input prices have stabilised.  There is, however some evidence that further input price pressure will apply from now until the year end, which may lead to continued margin pressure in this business. 

 

Currency

 

Compared to the pre-crisis environment, Sterling has remained relatively weak throughout the half year. Because of our export focus, Sterling's weakness is helpful to the Group's trading.  Our key trading exposure is to the US Dollar and our key balance sheet exposure is to the Euro, as approximately 50% of our debt is denominated in Euros.

 

For the half year under review, the US Dollar achieved an average rate of 1.64 compared to the corresponding prior year, when an average rate of 1.47 prevailed.  As indicated above, this reduced the profit improvement for H1 10/11 compared to H1 09/10 by approximately £0.7m.  As for the Euro, the currency weakened from 1.12 at the end of March 2010 to 1.15 at the end of September 2010, leading to a £0.3m unrealised gain on our Euro denominated debt.

 

Our hedging policy remains as set out in the past - we seek to ensure that realised gains/losses made in the businesses during the year from foreign exchange movements are broadly negated by the realised gains/losses on forward contracts and foreign currency loans repaid during the year.  This hedging policy enables us to achieve a higher level of predictability of earnings and cash flow, despite currency volatility, at least over a 12-18 month window.

 

We have hedged forward for the remainder of this financial year and for FY 11/12.  For the remainder of this financial year we are hedged at US/£ 1.64, and for FY 11/12 the rate is better at US$/£ 1.51.  This will, of course, help next year's profits relative to the current year.

 

Banking

 

Our net bank debt decreased to £14.3m at the end of H1 10/11.  It has reduced by nearly £6m in the last year and a half, primarily due to strong cash generation.  Since the end of the half year under review, we have concluded a sale and leaseback of the property occupied by Palagan, so realising £1.3m in cash.  Meanwhile, cash flow has continued to be strong.  Working capital management has been very good over the last six months despite the growth in volumes.

 

Our debt is now reducing to a level at which it will be sensible to consider a refinancing to provide us with terms that are more attractive than those currently in place.  This will be explored in coming months.

 

Current trading and future prospects

 

Trading continues to improve, albeit more gradually than the past twelve months and it is pleasing to report that our order books are healthy.  Many of the new customers won in the first half of the year will take months to reach full volume levels.  We therefore expect the volume trends that we have seen over the last twelve months to continue in the near term.

 

The Thailand factory is progressing well and is now making more than 50% of all bearings and this is increasing.  Our first direct Thai customer has been secured and the factory is now serving the west coast of the USA.  For our matrix and our mandrels businesses, capacity has been expanded or is in the process of expansion.

 

As we move into the second half of the year, we continue to focus on the following organic growth themes:

Customer development - our businesses have many excellent blue chip customer relationships based on the technical advantages of our products, but frequently only in one customer location or operating unit; the sales development opportunities associated with penetrating more of these locations and/or subsidiaries is absolutely outstanding.  Our enlarged and improved sales teams are pursuing this strategy forcefully targeting multinational customers around the world.

Territorial expansion - we have established sales offices in India and China with the intention of setting up local subsidiaries; these are markets, where growth rates for the applications into which our products are applied are growing at double digit rates. Our matrix and bearings businesses are leading the way in these areas. Direct sales into other new territories where there is significant potential are also ongoing.

New products - all our subsidiaries have opportunities for "near-to-market" product developments that will open up new customers and applications; work is ongoing in all subsidiaries to bring these developments to market as soon as practical.

 

Acquisition activity has been off the agenda in the last two years, although we can see this is changing.  Some vendors with whom we had discussions before the recession have made contact again.  The common theme is that they are "examining their options" now that the worst of the recession has passed. It will be difficult to execute any acquisitions unless valuations are realistic and funding options improve.  However, it seems likely that funding conditions will gradually improve and valuations will come into line.  We believe, therefore, that there is a good possibility that acquisitions will be back on the agenda in the next year or so and, in the meantime, we look forward to continued excellent progress through organic means.

 

Faisal Rahmatallah

Executive Chairman



Plastics Capital plc

Consolidated Income Statement

for the six months ended 30 September 2010

 

 



Before foreign exchange & exceptional items 

Foreign exchange impact on derivatives and loans

Exceptional items

Total


Before foreign exchange & exceptional items

Foreign exchange impact on derivatives and loans

Exceptional items

Total



2010

2010

2010

2010


2009

2009

2009

2009


Note

£'000

£'000

£'000

£'000


£'000

£'000

£'000

£'000












Revenue


16,302

-

-

16,302


12,883

-

-

12,883












Cost of sales


(9,906)

(205)

(63)

(10,174)


(7,780)

515

(561)

(7,826)












Gross profit


6,396

(205)

(63)

6,128


5,103

515

(561)

5,057












Distribution expenses


(782)

-

-

(782)


(716)

-

-

(716)












Administration expenses


(3,612)

-

-

(3,612)


(3,251)

-

-

(3,251)












Operating profit


2,002

(205)

(63)

1,734


1,136

515

(561)

1,090












Financial income

5

165

807

-

972


677

393

-

1,070












Finance expense

5

(606)

-

-

(606)


(664)

-

-

(664)












Net financing (costs) / income


(441)

807

-

366


13

393

-

406












Profit/(Loss) before tax


1,561

602

(63)

2,100


1,149

908

(561)

1,496












Tax

6

(214)

-

-

(214)


(215)

-

-

(215)












Profit/(Loss) for the period


1,347

602

(63)

1,886


934

908

(561)

1,281























Foreign exchange translation differences


(229)

-

-

(229)


(290)

-

-

(290)

Total comprehensive income


1,118

602

(63)

1,657


644

908

(561)

991












Earnings per share









Basic

8




7.0p





4.8p

Diluted

8




7.0p





4.8p

 

 



Plastics Capital plc

Consolidated Income Statement (continued)

for the year ended 31 March 2010

 

 








Before foreign exchange & exceptional

items

Foreign exchange impact on derivatives and loans

Exceptional items

Total








2010

2010

2010

2010


Note






£'000

£'000

£'000

£'000












Revenue







26,688

-

-

26,688












Cost of sales







(16,178)

564

(535)

(16,149)












Gross profit







10,510

564

(535)

10,539












Distribution expenses







(1,313)

-

-

(1,313)












Administration expenses







(6,644)

-

(122)

(6,766)












Operating profit







2,553

564

(657)

2,460












Financial income

5






297

324

-

621












Finance expense

5






(1,289)

-

-

(1,289)












Net financing costs







(992)

324

-

(668)












Profit before tax







1,561

888

(657)

1,792












Tax

6






142

-

-

142












Profit for the year







1,703

888

(657)

1,934























Foreign exchange translation differences







196



196

Total comprehensive income







1,899

888

(657)

2,130























Earnings per share









Basic

8









7.2p

Diluted

8









7.2p

 



Plastics Capital plc

Consolidated Balance Sheets

           

 

 

Unaudited

As at

30

September

2010

 

Unaudited

As at

30

September

2009 

 

Audited

As at

31

March

2010

 

 

£000

£000

£000

Non-current assets

 

 

 

 

Property, plant and equipment

 

5,161

5,289

5,210

Investments

 

33

33

33

Intangible assets

 

22,868

23,901

23,386

 

 

             

             

             

 

 

28,062

29,223

28,629

 

 

             

             

             

Current assets

 

 

 

 

Inventories

 

2,824

2,825

2,617

Trade and other receivables

 

6,516

5,630

6,604

Cash and cash equivalents

 

903

771

606


 

             

             

             


 

10,243

9,226

9,827

 

 

             

             

             

Total assets

 

38,305

38,449

38,456

 

 

             

             

             

 

 

 

 

 

Current liabilities

 

 

 

 

Interest-bearing loans and borrowings

 

2,890

3,562

2,855

Trade and other payables

 

4,661

3,980

4,404

Corporation tax liability

 

431

-

95

 

 

             

             

             

 

 

7,982

7,542

7,354

 

 

             

             

             

Non-current liabilities

 

 

 

 

Interest-bearing loans and borrowings

 

12,873

15,376

14,443

Other financial liabilities

 

111

523

851

Deferred tax liabilities

 

1,021

1,428

1,151

 

 

             

             

             

 

 

14,005

17,327

16,445

 

 

             

             

             

Total liabilities

 

21,987

24,869

23,779

 

 

             

             

             

Net assets

 

16,318

13,580

14,657

 

 

             

             

             

Equity attributable to equity holders of the parent

 

 

 

 

Share capital

 

274

270

270

Share premium

 

13,854

13,857

13,854

Reverse acquisition reserve

 

2,640

2,640

2,640

Translation reserve

 

384

127

613

Capital redemption reserve

 

15

69

15

Retained earnings

 

(849)

(3,383)

(2,735)

 

 

             

             

             

Total equity

 

16,318

13,580

14,657

 

 

             

             

             

 

 

Plastics Capital plc

Consolidated Cash Flow Statements

 

 

Unaudited

Six months

ended

30 September

2010

Unaudited

Six months

ended

30

September

2009

Audited

Year

ended

31

March

2010

 

 

£000

£000

£000

Cash flows from operating activities before tax

 

 

 

 

Profit for the period

 

2,100

1,496

1,792

Adjustments for:

 

 

 

 

Depreciation, amortisation and impairment

 

958

1,006

1,945

Financial income

 

(972)

(1,070)

(621)

Financial expense

 

606

664

1,289

Equity settled share based payment expenses

 

-

-

5

 

 

             

             

             

Operating profit before changes in working capital and provisions

 

2,692

2,096

4,410

Decrease / (Increase) in trade and other receivables

 

88

(219)

(1,193)

(Increase) / Decrease in inventories

 

(207)

19

227

Increase in trade and other payables

 

56

311

932

 

 

             

             

             

Cash generated from operations

 

2,629

2,207

4,376

 

 

 

 

 

Interest paid

 

(586)

(655)

(1,184)

Income tax paid

 

-

-

138

 

 

             

             

             

Net cash from operating activities

 

2,043

1,552

3,330

 

 

             

             

             

Cash flows from investing activities

 

 

 

 

Acquisition of property, plant and equipment

 

(350)

(431)

(791)

Interest received

 

-

-

36

Proceeds from disposal of PPE

 

-

-

1

 

 

             

             

             

Net cash from investing activities

 

(350)

(431)

(754)

 

 

             

             

             

Cash flows from financing activities

 

 

 

 

Repayment of borrowings

 

(1,396)

(757)

(2,377)

 

 

             

             

             

Net cash from financing activities

 

(1,396)

(757)

(2,377)

 

 

             

             

             

Increase in cash and cash equivalents

 

297

364

199

Cash and cash equivalents at 1 April

 

606

407

407

 

 

             

             

             

Cash and cash equivalents at 30 September

and 31 March

 

 

903

 

771

 

606

 

 

             

             

             


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 2009

270

13,848

417

2,640

69

(4,664)

12,580



             

             

             

             

             

             

             


Total comprehensive income









Profit or loss

-

-

-

-

-

1,281

1,281


Foreign exchange translation differences

 

-

 

-

 

(290)

 

-

 

-

 

-

 

(290)


Total comprehensive income

-

-

(290)

-

-

1,281

991


Transactions with owners recorded directly in equity









Issue of new shares

-

9

-

-

-

-

9


Total transactions with owners

-

9

-

-

-

-

9



             

             

             

             

             

             

             


Balance at 30 September 2009

270

13,857

127

2,640

69

(3,383)

13,580



             

             

             

             

             

             

             


Total comprehensive income









Profit or loss

-

-

-

-

-

648

648


Foreign exchange translation differences

-

-

486

-

-

-

486


Other movement

-

-

-

-

-

-

-


Total comprehensive income

486

-

-

648

1,134


Transactions with owners recorded directly in equity

 

 








Issue of new shares

-

(3)

-

-

-

-

(3)


Capital redemption reserve

-

-

-

-

(54)

-

(54)


Total transactions with owners

-

(3)

-

-

(54)

-

(57)



             

             

             

             

             

             

             


Balance at 31 March 2010

270

13,854

613

2,640

15

(2,735)

14,657



             

             

             

             

             

             

             


Total comprehensive income









Profit or loss

-

-

-

-

-

1,886

1,886


Foreign exchange translation differences

 

-

 

-

 

(229)

 

-

 

-

 

-

 

(229)


Total comprehensive income

-

-

(229)

-

-

1,886

1,657


Transactions with owners recorded directly in equity









Equity-settled share based payment transactions

 

-

 

-

 

-

 

-

 

-

 

-

 

-


Issue of new shares

4

-

-

-

-

-

4


Total transactions with owners

4

-

-

-

-

-

 4



             

             

             

             

             

             

             


Balance at 30 September 2010

274

13,854

384

2,640

15

(849)

16,318



             

             

             

             

             

             

             


 

 



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 2010 that are effective (or available for early adoption) as at 31 March 2011.  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 2011.

 

However, the adopted IFRSs that will be effective (or available for early adoption) in the annual financial statements for the period ending 31 March 2011 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 2011.

 

Accounting policies

The accounting policies applied to the Interim Results for six months ended 30 September 2010 are consistent with those of the Company's annual accounts for the year ended 31 March 2010 with the exception of the items noted below:

·     Amendments to IFRS3 - Business Combinations - issued in May'10 and effective for annual periods beginning on or after 1 July 2010

·     Amendments to IAS 27 - Consolidated and Separate Financial Statements - issued in May 2010 and effective for annual periods beginning on or after 1 July 2010

 

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

2010

Unaudited

Six months to

30 September

2009

 

 

 

Change



£000

£000

%






Revenue


16,302

12,883

26.5%

Gross profit


6,128

5,057

21.2%

Operating profit


1,734

1,090

59.1%






Add back: Depreciation


399

421


Add back: Amortisation and impairment


559

559







EBITDA


2,692

2,070

30.0%






Add back: Exceptional costs


63

561







EBITDA before exceptionals costs


2,755

2,631

4.7%






Profit before tax


2,100

1,496







Add back: Amortisation and impairment


559

559


Add back: Exceptional costs


63

561


Add back: Unrealised foreign exchange (gains)


(231)

(393)


Add back: Unrealised derivative (gains)


(741)

(677)







Profit before tax*


1,750

1,546

13.2%






Taxation


(214)

(215)







Profit after tax*


1,536

1,331

15.4%

Basic adjusted EPS*+


5.6p

4.8p

15.4%

Basic adjusted EPS*+x


4.6p

4.0p

11.3%

Basic EPS


7.0p

4.8p

45.8%

Capital expenditure


350

431

(18.8)%

Net Bank Debt


14,273

17,641

(19.1)%

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

+ based on 27,492,532 ordinary shares in issue

X applying a 28% tax rate

 



3          Operating segment information

 

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

Printing and Packaging - includes creasing matrix and films

Power Transmission - includes hose mandrel and plastic bearings

 


Power transmission

Printing & packaging

Unallocated and reconciling items

 

Total







Unaudited

Six months to

30 September

2010

Unaudited

Six months to

30 September

2010

Unaudited

Six months to

30 September

2010

Unaudited

Six months to

30 September

2010


£000

£000

£000

£000






External sales*

7,786

8,516

-

16,302

Profit before tax**

686

692

540

1,918

Depreciation and amortisation

253

219

487

959

Segment assets***

9,148

10,494

16,692

36,334

Segment liabilities****

(2,520)

(4,250)

(15,116)

(21,986)


_______

_______

_______

______







Unaudited

Six months to

30 September

2009

Unaudited

Six months to

30 September

2009

Unaudited

Six months to

30 September

2009

Unaudited

Six months to

30 September 2009


£000

£000

£000

£000






External sales*

5,949

6,934

-

12,883

Profit / (loss) before tax

(246)

851

(135)

470

Depreciation and amortisation

249

245

485

979

Segment assets

8,259

6,789

23,401

38,449

Segment liabilities

(3,805)

(3,715)

(17,349)

(24,869)


_______

_______

_______

______












Audited

2010

Audited

2010

Audited

2010

Audited

2010


£000

£000

£000

£000






External sales*

12,363

14,325

-

26,688

Profit / (loss) before tax

(483)

1,095

1,950

2,562

Depreciation and amortisation

522

251

1,172

1,945

Segment assets

9,835

9,986

18,635

38,456

Segment liabilities

(3,542)

(4,248)

(16,009)

(23,779)


_______

_______

_______

______






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

** Profit before tax for unallocated and reconciling items includes the following material items: management income of £1,475,000,  net interest of £583,000, head office costs of £507,000, unrealised fx gain of £214,000, realised fx loss of £205,000 and rental income of £75,000

*** Segment assets  for unallocated and reconciling items includes the following material items: investments and goodwill of £19,161,000 and an overdraft of £1,177,000

*** Segment liabilities for unallocated and reconciling items includes the following material items: loans of £14,808,000, deferred tax of £1,021,000 and derivatives of £111,000

 

 

 



3          Operating segment information(continued)

 

Reconciliation of reportable segment revenue



 

Unaudited

Six months to 30 September 2010

£000

 

Unaudited

Six months to 30 September 2009

£000

 

 

Audited

2010

£000

Printing & packaging





  Creasing matrix


3,469

2,806

5,754

  Specialist films


5,047

4,128

8,571

Power Transmission





  Plastics bearings


5,910

4,944

10,217

  Hose mandrel


1,876

1,005

2,146



             

             

             

Turnover per consolidated income statement

16,302

12,883

26,668



            

            

             

 

 

Reconciliation of reportable segment profit



 

Unaudited

Six months to 30 September 2010

£000

 

Unaudited

Six months to 30 September 2009

£000

 

 

Audited

2010

£000






Total profit for reportable segments


1,918

470

2,562



            

            

            



1,918

470

2,562

Unallocated amounts:





  Amortisation


(559)

(559)

(1,119)

  Net foreign exchange gains


-

908

-

  Unrealised gains on derivatives


741

677

349



            

            

            

Consolidated profit before income tax

2,100

1,496

1,792



           

           

             

 

 

4          Exceptional items

 

Exceptional costs incurred in the period relate to the write-off of stock on the restructuring / integration of businesses and the restructuring costs associated with moving some production to the Thai factory.



5          Financial income and expenses

 



Unaudited

Six months to

30

September

2010

£000

 

Unaudited

Six months to

30 September

2009

£000

 

Audited

Year to

31 March

2010

£000

Financial income:





 Interest income


-

-

37

 Gains on derivatives used to manage interest rate risk

165

677

260



             

             

             

Financial income


165

677

297



               

               

               

Financial expenses:





 Bank interest


571

649

1,257

 Deferred consideration interest


35

15

32



             

             

             

Financial expenses


606

664

1,289



               

               

               

Financial income and expenses included within foreign exchange:



 Net foreign exchange (gain)


(231)

(393)

(236)

 Gains on derivatives used to manage foreign

exchange risk 

 

(576)

 

-

 

(88)



             

             

             

Exceptional items


(807)

(393)

(324)



             

             

             

 

The net foreign exchange (gains) represent unrealised (gains) arising on the translation of foreign currency loans back into Sterling.

 

 

6          Taxation

 

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

 

 

7          Dividends

 

The Directors do not recommend the payment of an interim dividend (30 September 2009: nil).

 



8          Earnings per share

 


Unaudited

Six months to

30 September

2010

Unaudited

Six months to

30 September

2009

Audited

Year to

31 March

2010


£000

£000

£000

Numerator




Profit for the period

1,886

1,281

1,934





Denominator




Weighted average number of shares used in basic EPS

26,953,463

26,940,000

26,935,663

Effect of employee share options

50,000

13,463

52,826

Weighted average number of shares used in diluted EPS

27,003,463

26,953,463

26,988,489









Basic earnings per share (total)

7.0p

4.8p

7.2p

Diluted earnings per share (total)

7.0p

4.8p

7.2p





 

 

9          Post balance sheet event

 

On 25 October 2010, Plastics Capital completed on a sale and leaseback agreement with JLW Properties Limited relating to the Group's property at Gilpin Street and Tavistock Street in Dunstable where Palagan, a Group subsidiary which manufactures high strength customised films, is based.  The consideration received in cash by the Group was £1.3 million with the Group entering into a 15 year lease, with five yearly rent reviews.  The commencing rent will be £120,000 per annum.

 

 

10        Accounts

 

Copies of the interim accounts may be obtained from the Company Secretary at the Registered Office of the Company: St Mary's House, 42 Vicarage Crescent, London, SW11 3LD.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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