Trading update27 Oct 2017 08:18
Ttrading update following the positive start to the second half of the year announced in the Company's interim results on 7 September 2017.
The Group has continued to generate increased sales of its d2w oxo-biodegradable plastic additives in several of its markets. These markets include South America and the Far East but momentum has been most apparent in the Middle East, and in particular Saudi Arabia, where legislation requires the use of oxo-biodegradable technology for almost all everyday plastic items made in or imported into the country. Enforcement of the legislation commenced earlier this year.
The initial uplift in orders and enquiries from the Company's regional distributor (as previously reported) have continued, and the Board now expect revenues for the year to 31 December 2017 to be approximately �8.0 million (2016: �6.8 million). Due to the operational gearing of the Group, the Board expects that profit before tax will be significantly higher than current market expectations, and not less than �350,000 for the full year (2016: �123,000).
As at close of business on 26 October 2017 the Group had cash in the bank, net of its invoice discounting facility, of �317,000 as compared with a net borrowing position of �577,000 on 30 June 2017. In addition, the Group has a �1.50 million invoice discounting facility to assist in funding receivables, together with a �0.50 million overdraft facility. The working capital of the Group fluctuates depending on the customer mix within its revenues at any point in time. The cash position as stated is not necessarily an indication of the cash position at the end of the year.
Michael Laurier, Chief Executive commented "I am very pleased with the Group's progress and in particular the growing adoption of our core d2w oxo-biodegradable products. With the growing problem of plastic pollution, and in particular microplastics, we continue to see a growth in enquiries, not just in the Middle East, but globally. It is becoming much better known that plastics treated with d2w oxo-biodegradable technology will go a long way towards reducing the issue of plastic waste on land and in the oceans."
Sign In
Follow the stocks
