LONDON (Alliance News) - Plastics Capital PLC Monday reported an increase in profit and revenue for the full-year, despite mixed trading across the business.
The niche plastics products manufacturer posted pretax profit of GBP3.6 million for the year ended March 31, up from GBP3.3 million, as revenue crept up 3.3% to 32.5 million from GBP31.4 million a year earlier.
Earnings before interest, taxation, depreciation and amortisation margin moved up to 15.1% from 14.3% a year earlier.
Plastics Capital said its performance reflected a mixed trading performance across its two main business areas - packaging and industrial products.
Revenue from packaging consumables rose slightly to GBP5.7 million from GBP5.6 million a year earlier, however, high strength film packaging sales dipped to GBP12.1 million from GBP11.5 million.
Sales were also mixed for industrial products, with revenue from plastic rotating parts down to GBP10.4 million from GBP11.2 million but hydraulic hose consumables revenue up to GBP4.3 million from 3.1 million a year earlier.
The company said revenue from new business across the group was GBP1.6 million during the year, which was below expectations.
"We had anticipated that programmes won in prior years would contribute significantly to sales during the period and whilst this did happen in some areas of our business, it was not the case throughout," the company said.
Plastics Capital said conversion of new projects into sales in the plastic bearing division was slower than expected. This slow conversion was in part due to internal issues which have now been rectified or are currently being rectified, the company said.
In China, the company acquired Beijing Higher Shengli Printing Science and Technology Co Ltd for GBP2.2 million.
"The acquisition brings with it approximately GBP2 million of annual revenue with good profitability, an efficient factory with 42 employees in Beijing and a very good distribution network for creasing matrix in China," Plastics Capital said.
Looking ahead, the company said trading in the first quarter 2015 continues in line with management expectations, while there are signs that trading conditions will improve over the coming months. Plastics Capital said its pipeline of new business remains strong and converting them into sales during the year is a priority.
On the back of its performance the company increased its dividend to 2.0 pence from 1.33 pence making a total dividend of 3 pence compared with 2 pence a year earlier.
Plastics Capital shares were quoted up 1.8% 137.40 pence Monday.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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