Trading Update

RNS Number : 9474W

Plastics Capital PLC

03 May 2016

 

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 trading for the full year ended 31 March 2016 to be in line with market expectations.

Trading in the second half of the year was considerably ahead of that for the first half in terms of both revenue and profit before tax. Trading improved in the Industrial Division with the bearings business performing strongly as the year progressed, while the Films Division also continued to make good progress delivering on its key initiatives with 900 tonnes of new capacity added during the year.  In addition, we benefitted in the second half of the year from certain external factors, such as the Christmas upswing that applies to the Films Division, an improved currency position and lower raw material prices, which increased operating margins.  Cash conversion was also good during the year with net debt at the end of the year in-line with market expectations.

Despite difficult macroeconomic conditions, which negatively affected certain parts of the business, new business wins have generally compensated for softer global markets. Moreover, during the last year, we have developed a pipeline of new products to be introduced during the next 12 months, which create the potential for strong organic growth over the next few years. We are also expanding capacity in industrial films, bearings and mandrels - all areas where we anticipate capacity constraints in the next 12-24 months. Finally, we continue to develop opportunities for acquisitive growth which remains an important part of our business strategy.

Commenting, Faisal Rahmatallah, Executive Chairman, said: "We are pleased to report that trading in the second half of the year was strong after an indifferent first half. The Group is currently progressing a number of exciting projects for future growth, including new product introductions, capacity expansions and bolt-on acquisitions and investments. We anticipate bringing a number of these projects to fruition over the next 12 months, which augurs well for improved sales and profit growth for the Group."

 

For further information, please contact:

Plastics Capital plc	Tel: [phone]
Faisal Rahmatallah, Executive Chairman
Nick Ball, Finance Director
Cenkos Securities	Tel: [phone]
(Nomad and joint broker)
Mark Connelly
Callum Davidson
Allenby Capital Limited	Tel: [phone]
(Joint broker)
David Hart
Katrina Perez
Walbrook PR Ltd	Tel: [phone] or [e-mail]
Paul Cornelius	Mob: [phone]
Helen Cresswell	Mob: [phone]

Notes to Editors

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

 

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