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Cenkos Securities retained its "buy" stance on Plastics Capital* (PLA) with a target price of 110p. Having generated an average of 4 million pounds of free cash flows over the last two year, the broker expects the plastics and rubber products manufacturer's net debt to fall to 11.2 million pounds by the half year, from 19.6 million pounds in March 2009. Cenkos noted that the firm has placed greater focus on geographic expansion, with 25% of revenues now coming from emerging markets. The broker added that on a prospective earnings multiple of 6.4 times for the year ending March 2012, the shares trade on a 30% discount to the peer group average. The shares were unchanged at 68p.
A very positive forward statement for 2012
Commenting, Faisal Rahmatallah, Executive Chairman, said: "Despite the weak economic environment, the Group is performing well and should meet expectations over the final quarter. Looking into the next financial year, given our recent new business successes and assuming some improvement in the economic environment, I anticipate a year of significant progress."
Trading Update Plastics Capital plc (AIM: PLA), the niche plastics products group, is pleased to provide a Q3 trading update and to confirm that the Company continues to trade broadly in line with market expectations. Trading conditions remain challenging, reflecting global economic conditions, although new business is helping to offset a general softening in demand. The sales pipeline remains strong and its conversion into future revenues underpins the medium term prospects of the Group. By way of example, the Group's bearings division has recently converted a major design project to manufacture plastic bearing devices for a new customer based in the USA. The project, which is for a leading bathroom products company, is expected to be worth over £2m; sales for this project are expected to commence in 2013 and gradually build. Cash flow continues to be strong and the Group's debt is falling ahead of expectations, as working capital and capital expenditure are managed prudently.
http://www.investegate.co.uk/Article.aspx?id=201201170700156538V
17th January 2012 Analyst: Steven Moore Email: steven.moore@gecr.co.uk Tel: 020 7562 3370 Plastics Capital - "In-line" Trading Update; reiterate 'Buy' at 68.5p, Target Price: 100p
Commenting on these results, Faisal Rahmatallah, Executive Chairman, said: "These results reflect progress in a difficult environment. Strong new business successes over the past 18 months have enabled us to maintain revenues, despite underlying demand weakness. We have improved value-added margins, allowing us to increase investment in business development activities, particularly in emerging markets. We have also refinanced our bank debt halfway through the period, significantly reducing our interest costs going forward. Whilst the economic environment remains challenging, the Group will continue to pursue organic growth opportunities, particularly in emerging markets. Our new business pipeline remains strong and providing the economic environment does not worsen materially the Board expects progress to be broadly in line with expectations for the rest of the financial year."
Operational highlights · Good earnings per share growth in spite of challenging economic environment · Strong cash conversion - 70% of EBITDA converted to operating cash flow · New business wins continue - 11 new key accounts won during first half year · Excellent progress with new operations in China, India and Thailand · Bank refinancing completed in July '11 reduces interest costs
Financial Review Overall these interim results reflect continued earnings growth despite a difficult macroeconomic environment. Compared to the same period last year, on an underlying basis the Group has: · Maintained revenue at £16.3m · Operating performance broadly unchanged · Increased profit before tax and earnings per share by 10.5% · Reduced net debt by £3.6m to £11.2m Value-added margins have improved compared to the same period last year and have compensated for the investment in business development activity that has been made since then. Meanwhile, unit volumes were 5% down despite a good contribution from new business. The improvement in underlying profitability was primarily related to a reduction in interest costs caused by two factors; first, total debt has been reduced over the period, and, second, a refinancing was completed in July 2011, which has resulted in a lower average interest rate being paid. Underlying operating cash flow has been good with £1.8m being generated for the six month period - this represents a 70% conversion from EBITDA. Working capital has been well managed and capital expenditure has been maintained at normal levels. In addition to cash flow from operations, we were able to realise £0.4m from the sale of a 40% stake held in a private company called Skor Srl ("Skor"), based in San Marino. This minority stake was a legacy asset from the acquisition in August 2007 of Channel Matrix Limited and had a book value of £0.03m - the profit on the sale has been classified as an exceptional gain and is also excluded from underlying profitability. Skor had a complex and inefficient long term supply and distribution arrangement with C&T Matrix Limited ("C&T") which has now been restructured to the long term benefit of the Group. Finally, the Group redeemed £0.6m of outstanding deferred consideration associated with the acquisition in March 2008 of Palagan. The transformation of the Group's balance sheet since the 2008 crisis is evident. The Company is pleased to announce that it intends to pay an interim dividend of 0.33p to all shareholders on 6 January 2012 in respect of the period ended 30 September 2011. The record date for the dividend is 9 December 2011 and the associated ex div date is 7 December 2011.
http://www.investegate.co.uk/Article.aspx?id=201111300700139973S
30th November 2011 Analyst: Richard Gill Email: richard.gill@gecr.co.uk Tel: 0207 562 3378 Plastics Capital - Solid interim results with further debt reduction and maiden dividend announced. Full year forecasts lowered due to caution over global economic slowdown. Target price lowered to 100p, stance unchanged at BUY
http://sharecrazy.com/beta/Tips/5465/plastics-capital-reiterate-buy
27th June 2011 Analyst: Philip Morrish Email: philip.morrish@gecr.co.uk Tel: 0207 562 3362 Plastics Capital: Results in line; New and improved banking facilities agreed; Investing for next growth phase; Target Price - 119.7p; Reiterate Buy
Disappointing lack of upward movement in this underappreciated company. The reason may be that, according to Reuters Estimates, analysts were expecting the Company to report net profit of GBP1.85 million on revenue of GBP32 million for fiscal 2011. Although revenue should be around this figure, £1.85M seems a strange estimate as HY net profit was £1.88M. I would hazard a guess of FY PBT being a little under £4M.
GE&CR reiterated its "buy" recommendation for Plastics Capital* (PLA), the niche plastics products group. The research house notes that, after sales concluded the year strongly, the group expects performance for the full-year ended 31st March 2011 to be in line with market expectations. In light of this, GE&CR continues to value the company on a 2012 EV/EBITDA multiple of 7 times, a discount of about 10% to the sector's average, which implies a target price of 116p. Plastics shares remained untouched at 90p.
19th April 2011 Analyst: Philip Morrish Email: philip.morrish@gecr.co.uk Tel: 0207 562 3362 Plastics Capital: Positive Trading Update Confirms Forecasts; Target Price – 116p; Reiterate Buy
Plastics Capital poised to meet targets Date: Monday 18 Apr 2011 LONDON (ShareCast) - Aim listed niche plastic products manufacturer Plastics Capital said it currently expects full year results to be in line with market expectations. Sales concluded the year strongly, the group said, while profit margins remained satisfactory. Cash flow generation has been strong and debt has continued to reduce in line with expectations. Executive chairman Faisal Rahmatallah commented, "We have seen a strong improvement in trading over the last 12 months. This is partly a result of the recovery in the global economy, but also because we have been very successful in generating new business." However the rate of improved trading slowed in the second half of the year, Plastics said. Nevertheless new business activity has continued to progress well and the group said it is confident it will maintain solid profit growth over the next twelve months.
Commenting, Faisal Rahmatallah, Executive Chairman, said: "We have seen a strong improvement in trading over the last 12 months. This is partly a result of the recovery in the global economy, but also because we have been very successful in generating new business. We are confident that new business successes will sustain solid profit growth for the Group over the next twelve months."
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 31 March 2011 be in line with market expectations. Sales concluded the year strongly, profit margins have remained satisfactory, cash flow generation has been strong and debt has continued to reduce in line with our expectations. The rate of improvement in trading has slowed in the second half of the year as the state of the global economy improved after the recession. However, new business activity has continued to progress well and the Group is confident that this will continue to drive growth over the medium term.
21st February 2011 Analyst: Philip Morrish Email: philip.morrish@gecr.co.uk Tel: 0207 562 3362 Plastics Capital: Positive Trading Update; Increased Forecasts and Target Price – 118p (from 106p); Stance Remains Buy
very very impressive web site the video is good , worth watching . The recession hit hard but they are bouncing back . will have to wait for March results .
you like the spread , i like the rise also near 20%
I especially like the spread - it is the biggest asset of the company ! 20% that is something to be proud of, LOL !
Plastics Capital (PLA, 39.5p, £10.6m) Interims to 30 September 2009 reports a 6% decline in revenues to £12.9m (H109: £14.9m), a 140bp improvement in gross margins to 40.5%, an 11% decline in adjusted PBT to £1.6m (H109: £1.7) and an 18% fall in adjusted EPS to 4.9p (H109: 6.0p). The cash generative business has reduced net debt to £18.2m (FY09: £19.6m). Although these results seem poor, the group has made substantial improvements in PBT in comparison to H209’s £0.27m – the group is benefiting from the cost rationalisations and the weak sterling. The current order book is stronger, but customers are cautious about their prospects in the coming months. Plastics will focus on taking advantage of the weak sterling to drive product innovation and expand sales representation geographically to generate organic growth. Acquisitions have been put on hold for the short-term. The group are keen to reduce net debt. Their broker continues to forecast 2010 PBT of £2.8m and EPS of 7.5p. The stock trades on 5.2x due to the serviceable £18.2m of net debt. Since our buy recommendation on 21/09/09 (share price 25.5p), the share has risen by 55%. We retain our BUY recommendation and upgrade our target price from 33p to 49p.