Trading Update

RNS Number : 8256F

Plastics Capital PLC

30 April 2014

 



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 expects performance for the full year to 31 March 2014 to be in line with market expectations.

During the period, sales have increased primarily due to strong demand for hose mandrels, and operating profit margins have improved due to the operational gearing inherent in the Group despite continued investments in business development.  Operating cash flow has also been strong and, as planned, the Group reinvested a significant amount of this cash flow in new capital equipment during the year.  

We are also pleased to report continued progress across our rapidly expanding Chinese operations.  After the recent completion of the acquisition of Shengli, we are now the market leader for creasing matrix in China with 60 employees including a regional managing director and a finance manager.  This infrastructure is enabling us to also further develop our other business areas in the region and during the last four months alone, we have secured three new plastic ball bearing projects worth over £250,000 in annualised sales value in total from Chinese CCTV camera manufacturers.  Each project uses our standard CCTV platform, which has been especially developed for this application over the last three years.  Business development for hose mandrels in China is also progressing very well.

In the UK, recent investments in new capacity and capabilities for industrial films have been completed and we are pleased with the results to date.  There are further opportunities for organic development across the group and we intend to capture these fully over the next year or so.   

Commenting, Faisal Rahmatallah, Executive Chairman, said:

"Demand has picked up gradually over recent months, our expansion in China is going well and new business activity continues to contribute. We are pleased to see revenue growth again.  We have also made investments in new capacity and capabilities over the last year, and are confident that they will pay off in the months and years to come." 

Plastics Capital plc                                                                                          Tel: [phone]

Faisal Rahmatallah, Executive Chairman

Nick Ball, Finance Director

Cenkos Securities                                                                                            Tel: [phone]

Stephen Keys

Camilla Hume

Allenby Capital Limited	Tel: [phone]
Katrina Perez
Kelly Gardiner

Walbrook PR Ltd                                                                                              Tel: [phone]

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

Helen Cresswell                                  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, two in China and sales offices in the USA, Japan, China and India.  Approximately 60 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 350 employees.

Further information can be found on www.plasticscapital.com

 

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