LONDON (Alliance News) - Plastics Capital PLC on Thursday said it expects its results for the financial year to the end of March to be broadly in line with market expectations, despite second half trading falling below its forecasts.
The niche plastic products company said trading in the second half of the year did not meet its expectations, but was much stronger than in the first half of the financial year on the back of a good performance from Flexipol, which it acquired in November, and better trading in its BNL bearings division.
Creasing matrix sales grew steadily in the second half, but the recovery in mandrel sales only started to materialise at the start of April, post the close of its financial year. Plastics Capital said it expects its industrial division to recovery slowly over the course of the current financial year.
Operating margins for the company benefited from lower raw material prices and cost-cutting plans, while cash generation was in line with market expectations.
"We have seen a substantial recovery in performance during the second half year particularly in our bearings business; we are also very pleased with the performance to date and the potential for further development of our recent acquisition, Flexipol. Both of these factors augur well for growth and profitability for the 2015-16 financial year," said Executive Chairman Faisal Rahmatallah.
Shares in the company were up 3.0% to 104.00 pence on Thursday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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