Plastics Capital PLC Trading Statement (3185G)
March 01 2018 - 2:02AM
UK Regulatory
TIDMPLA
RNS Number : 3185G
Plastics Capital PLC
01 March 2018
1 March 2018
Plastics Capital plc
("Plastics Capital" or the "Group")
Trading Update
Plastics Capital (AIM: PLA), the niche plastics products group,
announces that it expects results for the full year ending 31 March
2018 to be marginally below current market expectations in terms of
Sales and adjusted EBITDA.
Organic sales growth in H2 FY17-18 has continued to be very
strong. Films Division sales growth has been exceptional,
benefitting from the recent investments we have made in increasing
capacity and new capabilities. Growth in the Industrial Division,
particularly our bearings business, has improved but remains weaker
than we expected when we reported at the interim stage. This
largely represents a slower than expected pick-up in sales on
certain large bearings contracts. With the benefit of hindsight, it
seems that sales made on these contracts towards the end of FY16-17
were particularly high due to pipeline filling by customers and are
unlikely to be sustained this financial year.
Taken as a whole, we expect to report that profitability has
improved significantly from that reported in H1, with adjusted
EBITDA expected to be approaching double that generated in H1. Two
factors account for this; firstly, Films Division profitability has
benefitted from the strong growth in sales which started in Q2 and
secondly, sales have picked-up, although modestly, in the bearings
business where operational gearing is significant. However, because
of the difference in operational gearing between the Films Division
and the Industrial Division, higher sales than expected in the
Films Division are not expected to not make up for lower sales than
expected in the higher margin Industrial Division.
Commenting, Faisal Rahmatallah, Executive Chairman, said: "We
continue to see very strong sales growth particularly in the Films
Division, which has traditionally been our steadiest business area.
Our bearings business is picking up more slowly than we expected,
and this will impact this year's results. However, the overall rate
of travel of sales and profits growth across the entire Group is
good and the Board believes profitability will follow sales as
investments we have made over the last two years bed down."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information, please contact:
Plastics Capital plc Tel: 020 7978 0574
Faisal Rahmatallah, Executive
Chairman
Nick Ball, Finance Director
Cenkos Securities Tel: 020 7397 8900
(Nomad and joint broker)
Mark Connelly
Callum Davidson
Allenby Capital Limited Tel: 020 3328 5656
(Joint broker)
David Hart
Katrina Perez
Notes to Editors
Plastics Capital is a niche manufacturer of specialist plastic
products. Applications for these products vary widely and examples
include:
-- Packaging for the food manufacturing and distribution - films, sacks and pouches
-- Steering columns and instrument control knobs in the
automotive industry - plastic ball bearings
-- Hydraulic and industrial rubber hose manufacture - various types of plastic mandrel
-- Cardboard box manufacture - plastic creasing matrices
Plastics Capital's business model is based on understanding
customers' problems in depth, and then developing and mass
producing proprietary, technical solutions for these problems.
The business operates through two divisions, Films and
Industrial, and has the majority of its production in five UK based
factories, with a further three factories in Asia. Approximately
50% of its GBP75 million sales are made outside the UK to more than
80 countries.
Further information can be found on www.plasticscapital.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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