New Project Successes

RNS Number : 5194A

Plastics Capital PLC

02 April 2012

 



Plastics Capital plc

("Plastics Capital")

New Contract Wins for Bearings Division

Plastics Capital plc (AIM: PLA) the niche plastics products manufacturer, is pleased to announce an excellent financial year for new contract wins within its plastic ball bearings division ("BNL"), which is its largest division by revenue, in conjunction with the existing business performing in-line with management expectations.

We are pleased to announce that during the current financial year we have secured 18 new contracts worth a total incremental annual sales value exceeding £2.3m, which represents a 10% increase on the corresponding period last year. Of these new contracts, 30% is being delivered by seven new customers, so enlarging our customer base and providing opportunities for further contract wins with the same customers in the future; these successes reinforce our growth strategy.

In addition, we have recently secured our first project win for another local Chinese customer, the substantial textiles machinery manufacturer, Jen Haur Company Ltd. This is further evidence of the encouraging start made by the Group's recently established Shanghai sales office. 

Furthermore, the new projects pipeline for the bearings business has grown stronger with a particularly high number of excellent opportunities emerging within the automotive sector. The growth in the projects pipeline is being driven by customers becoming increasingly sensitive to the advantages associated with high specification plastic ball bearings as made by BNL; specifically issues like weight, design flexibility and cost.

Faisal Rahmatallah, Executive Chairman of Plastics Capital, commented:

"Our plastic ball bearings business has rewarded the investment we have made in business development activities over the last 2 years.  New projects are coming through and will translate into revenue growth once tooling is complete and production orders start.  I am confident that we will see further significant success in this area over the next 12 months too."

For further information:

Plastics Capital plc                                                                  Tel: [phone]

Faisal Rahmatallah, Executive Chairman

Nick Ball, Finance Director

Cenkos Securities                                                                    Tel: [phone]

Stephen Keys

Adrian Hargrave

Walbrook PR Ltd                                                                     Tel: [phone]

Paul Cornelius                     Mob: [phone] or [e-mail]

Helen Westaway              Mob: [phone] or [e-mail]

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 65 per cent of sales are outside the UK going 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 300 employees.

Further information can be found on www.plasticscapital.com

 

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