Trading Update

RNS Number : 5253B

Plastics Capital PLC

21 February 2011

 



For Immediate Release                                                                     21 February 2011

Plastics Capital plc

("Plastics Capital" or the "Group")

Trading Update

Plastics Capital (AIM: PLA), the niche plastics products group, is pleased to announce that it currently expects performance for the full year to be ahead of market expectations.

Trading conditions since 30 September 2010 have continued to improve, with volumes increasing significantly relative to the same period last year.  New business activity has continued to progress well with the following significant developments:

·     Our Indian sales subsidiary, based in Mumbai, has won its first orders for creasing matrix from local Indian customers.  Prospects for plastic ball bearings in India are also excellent.

·     Seven key accounts (each with expected annual sales exceeding £100,000) have been won since 30 September 2010.  This is in line with our targeted strike rate. The full benefit of these account wins will be felt in the next financial year.

·     New project wins in our plastic ball bearings business have gathered pace significantly in the second half year with the pipeline for new projects continuing to strengthen.  We now expect the current financial year to be close to a record year for new project wins, emphasising the progress made since the global economic crisis after which the vast majority of projects were delayed or aborted.  

Raw material inflation continues to be a feature in some parts of our business but has been managed effectively.  Margins meanwhile remain satisfactory and cash flow remains strong with debt reducing in line with our expectations.

Commenting, Faisal Rahmatallah, Executive Chairman, said:

"There are excellent opportunities for growth in the markets we serve.  The steps we have taken to increase business development activity are driving revenues and profits forward healthily. We will continue to add sales resources and production capacity as appropriate to deliver the revenue increases that we believe are achievable over the medium term."

Plastics Capital plc                                                                 Tel: [phone]

Faisal Rahmatallah, Executive Chairman

Nick Ball, Finance Director

Cenkos Securities                                                                  Tel: [phone]

Stephen Keys

Elizabeth Bowman

Buchanan Communications                                                    Tel: [phone]

Richard Darby

Christian Goodbody

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, China and India.  Approximately 62 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 290 employees.

Further information can be found on www.plasticscapital.com

 

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