Last checked at 1 Dec 2008 07:00
For immediate Release 01 December 2008
Plastics Capital plc
Interim Results for six months ended 30 September 2008
Plastics Capital plc (AIM: PLA; "Plastics Capital" the "Company" or the "Group") the consolidator of niche plastics products manufacturers, today announces its interim results for the six months ended 30 September 2008.
The financial information has been prepared using International Financial Reporting Standards as adopted by the EU ("IFRS").
Financial highlights
| Six months ended 30 September 2008** £000 | Six months ended 30 September 2007 £000 | % Change | |
| Revenue | 15,622 | 8,911 | +75% |
| Gross Profit | 5,973 | 4,024 | +48% |
| EBITDA excluding exceptionals | 2,651 | 1,434 | +85% |
| Profit before tax* | 1,545 | 704 | +119% |
| Profit after tax* | 1,413 | 666 | +112% |
| Adjusted EPS* | 5.3p | 2.5p*** | +112% |
* Excluding amortisation, exceptionals, unrealised foreign exchange & derivative gains/losses
** A reconciliation to the consolidated income statement is shown in note 2
*** Based on 26.90m shares currently in issue
Operational highlights
Excellent growth driven by the successful acquisitions strategy;
Strong export focus underpins the Group's performance;
Good contribution from the most recent acquisition, Palagan Limited, which is in line with expectations;
New production facility in Thailand completed and operational for the second half of the year;
Solid performance from all businesses across the Group despite challenging market conditions due to global economic slowdown.
Commenting on these results, Faisal Rahmatallah, Executive Chairman, said:
"These interim results demonstrate good progress over the last twelve months. We can anticipate further growth from recent initiatives like Thailand, and from our high level of exports, which are benefiting from Sterling's recent weakness. We are pleased with the success of our acquisitions strategy and although completing acquisitions in the current climate is challenging, as conditions improve, we are confident that good opportunities will be available. The Board is confident that performance for the full year will demonstrate the solid progress being made."
Plastics Capital plc Tel: 020 7326 8423
Faisal Rahmatallah, Executive Chairman
Nick Ball, Finance Director
Cenkos Securities Tel: 020 7397 8900
Stephen Keys
Beth McKiernan
Buchanan Communications Tel: 020 7466 5000
Richard Darby
Christian Goodbody
Notes to Editors
Plastics Capital successfully floated on AIM on 3 December 2007 and undertook a share for share exchange to acquire Plastics Capital Trading Limited and its subsidiary undertakings on 6 December 2007.
Plastics Capital is a consolidator of plastics products manufacturers focused on proprietary products for niche markets. The Group has five factories in the UK, one in Thailand and sales offices in the USA and Japan. Approximately 50 per cent of sales are exported to over 70 countries worldwide. Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness. The Group has approximately 310 employees.
Further information can be found on www.plasticscapital.com
CHAIRMAN'S STATEMENT
Introduction
We are pleased to present our interim results for the six months ended 30 September 2008. Plastics Capital was incorporated on 2 October 2007 by Plastics Capital Trading Limited as a vehicle to float on AIM and to acquire in a share for share exchange on 6 December 2007, Plastics Capital Trading Limited and its subsidiary undertakings in the UK, Japan and the USA.
The comparable financial information for the six months to September 2007, as presented, represents the consolidated results and financial position of Plastics Capital Trading Limited and its subsidiaries for the six month period to 30 September 2007.
All financial information has been prepared using International Financial Reporting Standards as adopted by the EU ("IFRS").
Financial Review
Overall performance is broadly in line with expectations.
Compared to the same period last year, the Group has:
increased revenue by 75% to £15.6 million;
increased earnings before interest, tax, depreciation and amortisation (EBITDA) and exceptional items by 85% to £2.7 million; and
increased profit after tax, excluding amortisation, by 119%, to £1.5 million.
Revenue and earnings have increased primarily as a result of acquisitions, which have contributed significantly with a full six months impact from both Channel Matrix Limited, acquired in August 2007, and also six months impact from Palagan Limited, acquired in March 2008. Organic growth has again been strongest in our Rotating Parts Division, where sales to South East Asia have grown and sterling's weakness relative to the dollar and yen has been favourable in the period in question. We have achieved organic growth in our other businesses, albeit relatively modest, with growth in volumes somewhat affected by the adverse economic conditions.
Significant Developments
At the end of this period, we officially opened our new factory in Thailand. It has been set up to produce plastic bearings with injection moulding, assembly and toolmaking activities. Management, both expat and local, and employees have been recruited, inducted and trained as necessary for our technology and method of operation. The project has been completed within budget and within nine months from initial approval, which is an excellent achievement. The factory in Thailand will enable us to provide superior service to our customers in South East Asia as well as bringing cost advantages more generally.
Significant developments to our management structure have been made during this period. We have appointed two new Managing Directors, John Nichols at BNL, our bearings business, and Dave Kavanagh at Bell, our hose mandrel business. These appointments have enabled the former Managing Directors of these operations, Neil Partlett and Jeremy Clarke to move into Divisional Director roles, where they have the responsibility for strategic development of the businesses under their stewardship. This structure improves the Group's management capacity for further growth by acquisition, which is always a prime consideration.
Raw Materials
The period under review has seen upward pressure on raw material input costs, which in some cases has been significant. Although oil prices have been a factor, the main cause of polymer price inflation is the balance of supply and demand for each type of polymer, and some were out of balance during the first half of the year. Management have endeavoured, through working with customers and re-engineering product specifications where possible, to minimise the adverse impact of this on our results for the half year. Polymer price inflation appears to have now subsided and as a result we feel any further adverse impact for the full year will be limited.
Currency Volatility
At the end of the six month reporting period there was exceptional currency volatility; in particular sterling has now weakened against the dollar and yen by some 20-25%, this on top of weakness against the euro at the end of the prior financial period. As we export roughly 50% of what we produce, sterling's weakness is helpful to the Group's trading in the long run.
In order to have predictability in the short to medium term, our policy has been to hedge as much as reasonably possible. For the current financial year we are substantially hedged and this has led to some realised losses on forward contracts for the period in question, as well as some unrealised losses both on unexpired forwards and on the translation of our foreign currency denominated debt. It should be remembered that this has arisen after many years of sterling strength, when the Group's hedging policy has led to gains.
For the full year there are likely to be significant losses arising from our hedges, counteracting the gains we have made and will continue to make at the trading level. The extent of these losses is difficult to predict as currency markets remain very volatile. Given sterling's likely weakness for the foreseeable future and the extreme volatility experienced in currency markets at the moment, our hedging policy is under review and may be altered for future years.
Finance
Our total debt has increased marginally during the period, due to capital expenditure for Thailand, final payments for the Palagan acquisition and sterling's weakness causing our foreign currency loans to increase when translated into sterling; these unusual factors have slightly exceeded repayments made in the period.
Working capital management has been a focus. Significant stock reductions have been achieved across the Group during the half year. Debtors are continuously monitored, even more so in the current economic climate and the vast majority of these have always and will continue to be insured for credit.
Given the conditions in the credit markets, it is important to note that the redemption profile of our debt is favourable with no refinancing requirement until 2012.
Current trading and future prospects
Current trading is challenging, with the adverse volume trend apparent in the first six months continuing. The difficult global economic conditions that existed in the first half of the year up to 30 September became even more acute as we entered the second half. It is unwise to believe that our business will be unaffected by this in the near term. Looking forward into 2009-10, the Group's export focus should be very beneficial to performance given sterling's likely weakness and, in particular, its return to more normal levels against the US dollar.
Across the Group, considerable work is currently going into key business improvement programmes including, inter alia, product development, distributor management, productivity improvement, and quality. The Board wishes to extend its sincere thanks to all the Group's employees; we have had the full and unequivocal support of our employees in all aspects of the Group's development. The benefit of these improvement programmes will most likely be seen as we move into the next financial year.
Overall, our businesses remain highly profitable, demonstrating strong cash flows and very good market and competitive positions. We are confident that the Group will emerge from the current adverse global economic environment in an even stronger position.
Faisal Rahmatallah
Executive Chairman
Plastics Capital plc
Consolidated Income Statements
| Note | Unaudited Six months ended 30 September 2008 | Unaudited Restated Six months ended 30 September 2007 | Audited Year ended 31 March 2008 | ||||
| £000 | £000 | £000 | |||||
| Revenue | 3 | 15,622 | 8,911 | 20,452 | |||
| Cost of sales pre-exceptionals | (9,599) | (4,887) | (11,026) | ||||
| Exceptionals | 4 | (50) | - | (725) | |||
| Cost of sales | (9,649) | (4,887) | (11,751) | ||||
| Gross profit | 5,973 | 4,024 | 8,701 | ||||
| Total other operating income | - | 206 | 323 | ||||
| Distribution expenses | (511) | (504) | (1,009) | ||||
| Administrative expenses before restructuring costs: | (3,812) | (2,696) | (6,112) | ||||
| Exceptionals | 4 | (290) | (516) | (438) | |||
| Total administrative expenses | (4,102) | (3,212) | (6,550) | ||||
| Operating profit | 1,360 | 514 | 1,465 | ||||
| Financial income | 60 | 89 | 16 | ||||
| Financial expenses pre-exceptionals | 5 | (777) | (558) | (1,227) | |||
| Exceptionals | 5 | (321) | - | (3,123) | |||
| Financial expenses | (1,098) | (558) | (4,350) | ||||
| Net financing costs | (1,038) | (469) | (4,334) | ||||
| Profit/(Loss) before tax | 322 | 45 | (2,869) | ||||
| Taxation | 6 | (132) | (38) | 552 | |||
| Profit/(Loss) for the year from continuing operations | 190 | 7 | (2,317) | ||||
| Discontinued operations | - | (180) | (821) | ||||
| Profit/(Loss) for the period | 190 | (173) | (3,138) | ||||
| Attributable to: | |||||||
| Equity holders of the parent | 190 | (163) | (3,144) | ||||
| Minority interest | - | (10) | 6 | ||||
| Profit/(Loss) for the period | 190 | (173) | (3,138) | ||||
| Earnings per share (from continuing operations) | |||||||
| Basic | 8 | 0.7p | 0.1p | (14.4)p | |||
| Diluted | 8 | 0.7p | 0.1p | (14.4)p |
Plastics Capital plc
Statements of Recognised Income and Expenses
| Unaudited Six months ended 30 September 2008 | Unaudited Six months ended 30 September 2007 | Audited Year ended 31 March 2008 | ||
| £000 | £000 | £000 | ||
| Foreign exchange translation differences | 99 | 13 | 124 | |
| Net income recognised directly in equity | 99 | 13 | 124 | |
| Profit/(loss) for the year | 190 | (173) | (3,138) | |
| Total recognised income and expense | 289 | (160) | (3,014) | |
| Total recognised income and expense for the period is attributable to: | ||||
| Equity holders of the parent | 289 | (150) | (3,020) | |
| Minority interest | - | (10) | 6 | |
| 289 | (160) | (3,014) | ||
Plastics Capital plc
Consolidated Balance Sheets
| Unaudited As at 30 September 2008 | Unaudited Restated As at 30 September 2007 | Audited As at 31 March 2008 | ||
| £000 | £000 | £000 | ||
| Non-current assets | ||||
| Property, plant and equipment | 6,007 | 2,826 | 5,095 | |
| Investments | 33 | - | 33 | |
| Intangible assets | 25,161 | 20,320 | 25,444 | |
| 31,201 | 23,146 | 30,572 | ||
| Current assets | ||||
| Inventories | 3,412 | 2,801 | 3,510 | |
| Trade and other receivables | 7,596 | 5,888 | 7,561 | |
| Cash and cash equivalents | 1,599 | 510 | 1,708 | |
| 12,607 | 9,199 | 12,779 | ||
| Total assets | 43,808 | 32,345 | 43,351 | |
| Current liabilities | ||||
| Interest-bearing loans and borrowings | 3,729 | 1,480 | 2,123 | |
| Trade and other payables | 4,381 | 3,261 | 5,616 | |
| Corporation tax liability | (151) | 150 | 45 | |
| 7,959 | 4,891 | 7,784 | ||
| Non-current liabilities | ||||
| Interest-bearing loans and borrowings | 15,857 | 19,483 | 15,867 | |
| Other financial liabilities | 326 | - | 323 | |
| Deferred tax liabilities | 2,165 | 2,181 | 2,165 | |
| 18,348 | 21,664 | 18,355 | ||
| Total liabilities | 26,307 | 26,555 | 26,139 | |
| Net assets | 17,501 | 5,790 | 17,212 | |
| Equity attributable to equity holders of the parent | ||||
| Share capital | 9 | 269 | 269 | 269 |
| Share premium | 9 | 13,868 | 13,868 | 13,868 |
| Reverse acquisition reserve | 9 | 2,640 | (12,718) | 2,640 |
| Translation reserve | 9 | 42 | (168) | (57) |
| Retained earnings | 9 | 682 | 3,496 | 492 |
| 17,501 | 4,747 | 17,212 | ||
| Minority interest | - | 1,043 | - | |
| Total equity | 17,501 | 5,790 | 17,212 | |
Plastics Capital plc
Consolidated Cash Flow Statements
| Unaudited Six months ended 30 September 2008 | Unaudited Six months ended 30 September 2007 | Audited Year ended 31 March 2008 | ||
| £000 | £000 | £000 | ||
| Cash flows from operating activities after tax | ||||
| Profit/(loss) for the period | 190 | (173) | (3,138) | |
| Adjustments for: | ||||
| Depreciation, amortisation and impairment | 951 | 444 | 1,335 | |
| Financial income | (60) | (90) | (16) | |
| Financial expense | 1,098 | 558 | 4,350 | |
| Gain on disposal of PPE | - | - | 21 | |
| Equity settled share based payment expenses | - | - | 7 | |
| Income tax expense/(income) | 132 | 13 | (552) | |
| 2,311 | 752 | 2,007 | ||
| Operating profit before changes in working capital and provisions | ||||
| (Increase) in trade and other receivables | (35) | (75) | (29) | |
| (Increase)/decrease in inventories | 98 | (8) | (223) | |
| (Decrease) in trade and other payables | (991) | (320) | (1,288) | |
| Cash generated from operations | 1,383 | 349 | 467 | |
| Interest paid | (826) | (274) | (1,229) | |
| Income tax paid | (330) | - | (151) | |
| Net cash from operating activities | 227 | 75 | (913) | |
| Cash flows from investing activities | ||||
| Acquisition of subsidiary, net of cash acquired | (602) | (10,946) | (15,710) | |
| Acquisition of property, plant and equipment | (1,303) | (629) | (2,695) | |
| Interest received | 60 | 4 | 16 | |
| Proceeds from disposal of PPE | - | - | 122 | |
| Net cash from investing activities | (1,845) | (11,571) | (18,267) | |
| Cash flows from financing activities | ||||
| Proceeds/(fees) from the issue of share capital | (455) | - | 14,485 | |
| Purchase of own shares | - | - | (30) | |
| Proceeds from new loan | 569 | 17,171 | 24,950 | |
| Drawdown on invoice discounting/overdraft facility | 1,608 | (6,160) | - | |
| Repayment of borrowings | (213) | - | (19,512) | |
| Net cash from financing activities | 1,509 | 11,011 | 19,893 | |
| (Decrease)/increase in cash and cash equivalents | (109) | (485) | 713 | |
| Cash and cash equivalents at 1 April | 1,708 | 995 | 995 | |
| Cash and cash equivalents at 30 September and 31 March | 1,599 | 510 | 1,708 | |
1 Basis of preparation and accounting policies
Basis of Preparation
Plastics Capital plc ("The Company") was incorporated on 2 October 2007 by Plastics Capital Trading Limited as a vehicle to float on AIM and to acquire in a share for share exchange Plastics Capital Trading Limited. Plastics Capital Trading Limited is a private limited company incorporated in England and Wales, with subsidiary undertakings in the UK, Japan and the USA.
The interim financial information presented in this statement represents the consolidated results and financial position of the Company and its subsidiaries for the six month period to 30 September 2008 and Plastics Capital Trading Limited and its subsidiaries for the six month period to 30 September 2007. However the Company's capital reserves presented in the Group balance sheet are those of the Company in all years and not Plastics Capital Trading Limited. The intention of this reverse acquisition accounting is to present the Group as always having existed as in accordance with IFRS 3. The financial information has been prepared using International Financial Reporting Standards as adopted by the EU ("IFRS"). Comparatives included for the year ended 31 March 2008 are audited.
The comparative figures for the financial year ended 31 March 2008 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985.
The interim financial information has been prepared on the basis of the recognition and measurement requirements of adopted IFRSs as at 30 September 2008 that are effective (or available for early adoption) as at 31 March 2009. Based on these adopted IFRSs, the directors have applied the accounting policies, as set out below, which they expect to apply to the annual IFRS financial statements for the year ending 31 March 2009.
However, the adopted IFRSs that will be effective (or available for early adoption) in the annual financial statements for the period ending 31 March 2009 are still subject to change and to additional interpretations and therefore cannot be determined with certainty. Accordingly, the accounting policies for that annual period will be determined finally only when the annual financial statements are prepared for the period ending 31 March 2009.
Restatement of Accounts
The interim accounts for the six month period ended 30 September 2007 have been restated for:
discontinued operations as disclosed in the annual accounts for the year ended 31 March 2008; and
reverse acquisition accounting arising on the flotation on AIM and the acquisition in a share for share exchange of Plastics Capital Trading Limited.
Accounting policies
The accounting policies applied to the Interim Results for six months ended 30 September 2008 are consistent with those of the Company's annual accounts for the year ended 31 March 2008.
2 Reconciliation of financial highlights table to the consolidated income statement
| Unaudited Six months to 30 September 2008 | Unaudited Restated Six months to 30 September 2007 | ||
| £000 | £000 | ||
| Operating profit | 1,360 | 514 | |
| Add back: Depreciation | 392 | 271 | |
| Add back: Amortisation | 559 | 339 | |
| Exceptionals | |||
| Add back: Restructuring costs | 340 | 516 | |
| Add back: Negative goodwill credit | - | (206) | |
| EBITDA before exceptionals | 2,651 | 1,434 | |
| Depreciation | (392) | (271) | |
| Interest | (714) | (459) | |
| PBT before exceptionals, amortisation, unrealised foreign exchange & derivative (gains)/losses | 1,545 | 704 | |
| Taxation | (132) | (38) | |
| PAT before exceptionals, amortisation, unrealised foreign exchange & derivative (gains)/losses | 1,413 | 666 | |
| Number of shares in issue | 26,875,032 | 26,875,032 | |
| Adjusted EPS | 5.3p | 2.5p | |
3 Segment information
| Continuing Operations | Injection Moulding | Proprietary Extrusion | Unallocated | Elimination | Consolidation |
| Unaudited Six months to 30 September 2008 | Unaudited Six months to 30 September 2008 | Unaudited Six months to 30 September 2008 | Unaudited Six months to 30 September 2008 | Unaudited Six months to 30 September 2008 | |
| £000 | £000 | £000 | £000 | £000 | |
| Revenue | |||||
| External sales | 6,018 | 9,604 | - | - | 15,622 |
| Group management charges | - | - | 922 | (922) | - |
| Total revenue | 6,018 | 9,604 | - | - | 15,622 |
| Operating profit | 579 | 845 | 495 | (559) | 1,360 |
| Segment assets | 12,249 | 37,838 | 29,238 | (35,517) | 43,808 |
| Segment liabilities | 5,332 | 7,825 | 17,636 | (4,486) | 26,307 |
| Net assets | 6,917 | 30,013 | 11,602 | (31,031) | 17,501 |
| Capital expenditure | 1,075 | 504 | - | 1,579 | 1,579 |
| Amortisation | 230 | 330 | - | - | 559 |
| Depreciation | 157 | 232 | 3 | - | 392 |
3 Segment information (continued)
| Continuing Operations | Injection Moulding | Proprietary Extrusion | Unallocated | Elimination | Consolidation |
| Unaudited Six months to 30 September | Unaudited Six months to 30 September | Unaudited Six months to 30 September | Unaudited Six months to 30 September | Unaudited Six months to 30 September | |
| 2007 | 2007 | 2007 | 2007 | 2007 | |
| £000 | £000 | £000 | £000 | £000 | |
| Revenue | |||||
| External sales | 6,094 | 2,817 | - | - | 8,911 |
| Group management charges | - | - | 606 | (606) | - |
| Total revenue | 6,094 | 2,817 | - | - | 8,911 |
| Operating profit | (14) | 423 | 444 | (339) | 514 |
| Segment assets | 10,462 | 25,808 | 22,564 | (28,017) | 30,817 |
| Segment liabilities | 4,399 | 3,409 | 22,411 | (5,049) | 25,170 |
| Net assets | 6,063 | 22,399 | 153 | (22,968) | 5,647 |
| Capital Expenditure | 1,595 | 9,238 | 1 | - | 10,834 |
| Amortisation | 201 | 138 | - | - | 339 |
| Depreciation | 219 | 89 | 3 | - | 311 |
| Continuing Operations | Injection Moulding | Proprietary Extrusion | Unallocated | Elimination | Consolidation |
| Audited Year to 31 March | Audited Year to 31 March | Audited Year to 31 March | Audited Year to 31 March | Audited Year to 31 March | |
| 2008 | 2008 | 2008 | 2008 | 2008 | |
| £000 | £000 | £000 | £000 | £000 | |
| Revenue | |||||
| External sales | 12,514 | 7,938 | - | - | 20,452 |
| Group management charges | - | - | 1,514 | (1,514) | - |
| Total revenue | 12,514 | 7,938 | - | - | 20,452 |
| Operating profit | 536 | 1,125 | 643 | (839) | 1,465 |
| Segment assets | 10,335 | 33,265 | 28,897 | (30,561) | 41,936 |
| Segment liabilities | 4,860 | 7,837 | 16,455 | (4,981) | 24,171 |
| Net assets | 5,475 | 25,428 | 12,442 | (25,580) | 17,765 |
| Capital Expenditure | 2,461 | 15,599 | 1,565 | - | 19,625 |
| Amortisation | 460 | 389 | - | - | 849 |
| Depreciation | 281 | 138 | 6 | - | 425 |
3 Segment information (continued)
The Group's secondary reporting format for reporting segment information is geographic segments:
| External revenue by location of customers | Total assets by location of assets | Capital expenditure by location of assets | |||||||
| Unaudited | Audited | Unaudited | Audited | Unaudited | Audited | ||||
| 6 mnth to 30 Sept 2008 £000 | 6 mnth to 30 Sept 2007 £000 | Year ended 31 Mar 2008 £000 | 6 mnth to 30 Sept 2008 £000 | 6 mnth to 30 Sept 2007 £000 | Year ended 31 Mar 2008 £000 | 6 mnth to 30 Sept 2008 £000 | 6 mnth to 30 Sept 2007 £000 | Year ended 31 Mar 2008 £000 | |
| United Kingdom | 7,244 | 3,165 | 6,445 | 41,025 | 30,635 | 41,424 | 731 | 11,082 | 20,258 |
| Europe | 2,945 | 1,808 | 5,232 | 45 | 163 | - | - | - | - |
| USA | 1,573 | 2,236 | 4,503 | 714 | 953 | 887 | - | - | - |
| Asia | 1,909 | 1,445 | 3,158 | 2,024 | 594 | 1,040 | 848 | - | 16 |
| Rest of the World | 1,951 | 1,495 | 3,266 | - | - | - | - | - | - |
| 15,622 | 10,149 | 22,604 | 43,808 | 32,345 | 43,351 | 1,579 | 11,082 | 20,274 | |
4 Exceptionals
Exceptional costs incurred in the period relate to the:
Restructuring following the transfer of the matrix business from Mulberry Plastics Limited to C&T Matrix Limited; and
Set up costs associated with the new BNL Thailand factory.
5 Financial expenses
| Unaudited Six months to 30 September 2008 £000 | Unaudited Restated Six months to 30 September 2007 £000 | Audited Year to 31 March 2008 £000 | ||
| Bank interest | 774 | 379 | 679 | |
| Loan note interest | - | 170 | 225 | |
| Losses on derivatives used to manage interest rate and foreign exchange risk | 3 | 9 | 323 | |
| Financial expenses | 777 | 558 | 1,227 | |
| Net foreign exchange loss | 321 | - | 1,397 | |
| Premiums on redemption of loans | - | - | 1,726 | |
| Exceptional items - financial expenses | 321 | - | 3,123 | |
6 Taxation
The taxation charge is calculated by applying the directors' best estimate of the annual tax rate for the profit/(loss) for the period.
7 Dividends
The directors do not recommend the payment of an interim dividend (30 September 2007: nil).
8 Earnings per share
| Unaudited Six months to 30 September 2008 | Unaudited Restated Six months to 30 September 2007 | Audited Year to 31 March 2008 | |
| £000 | £000 | £000 | |
| Numerator | |||
| Profit/(loss) for the period from continuing operations | 190 | 7 | (2,317) |
| Profit/(loss) for the period from discontinued operations | - | (180) | (821) |
| Profit/(loss) for the period | 190 | (173) | (3,138) |
| Denominator | |||
| Weighted average number of shares used in basic EPS | 26,862,516 | 10,650,000 | 16,050,000 |
| Effect of employee share options | 134,076 | 125,775 | 142,441 |
| Weighted average number of shares used in diluted EPS | 26,996,592 | 10,775,775 | 16,192,441 |
| Basic earnings per share from continuing operations | 0.7p | 0.1p | (14.4)p |
| Diluted earnings per share from continuing operations | 0.7p | 0.1p | (14.4)p |
| Basic earnings per share from discontinued operations | n/a | (1.7)p | (5.1)p |
| Diluted earnings per share from discontinued operations | n/a | (1.7)p | (5.1)p |
| Basic earnings per share (total) | 0.7p | (1.6)p | (19.6)p |
| Diluted earnings per share (total) | 0.7p | (1.6)p | (19.6)p |
9 Capital and reserves
| Share capital | Share premium | Translation reserve | Reverse Acquisition reserve | Retained earnings | Total | Minority Interest | Total equity | |
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
| Balance at 31 March 2007 | 269 | 13,868 | (181) | (12,718) | 3,650 | 4,888 | 1,053 | 5,941 |
| Total recognised income and expense for the year | - | - | 13 | - | (154) | (141) | (10) | (151) |
| Balance at 30 September 2007 | 269 | 13,868 | (168) | (12,718) | 3,496 | 4,747 | 1,043 | 5,790 |
| Total recognised income and expense for the year | - | - | 111 | - | (2,990) | (2,879) | 16 | (2,863) |
| Equity-settled share based payment transactions | - | - | - | - | 16 | 16 | - | 16 |
| Purchase of own shares | - | - | - | - | (30) | (30) | - | (30) |
| Purchase of minority interests | - | - | - | - | - | - | (1,059) | (1,059) |
| Impact of issue of new shares (Plastics Capital Trading Limited) | - | - | - | 1,328 | - | 1,328 | - | 1,328 |
| Proceeds from listing | - | - | - | 14,030 | - | 14,030 | - | 14,030 |
| Balance at 31 March 2008 | 269 | 13,868 | (57) | 2,640 | 492 | 17,212 | - | 17,212 |
| Total recognised income and expense for the year | - | - | 99 | - | 190 | 289 | - | 289 |
| Balance at 30 September 2008 | 269 | 13,868 | 42 | 2,640 | 682 | 17,501 | - | 17,501 |
Reverse acquisition
On 6 December 2007, the Company acquired in a share for share exchange the whole of the ordinary share capital of Plastics Capital Trading Limited. The reverse acquisition reserve arises on the accounting for the share for share exchange. Reverse acquisition accounting requires that Plastics Capital Trading Limited is treated as the acquirer and the Company the acquiree. A reverse acquisition reserve arises which represents the difference between the issued equity instruments of Plastics Capital Trading Limited immediately before the share for share exchange and the equity instruments of the Company along with the shares issued to effect the share for share exchange.
The intention of reverse acquisition accounting is to present the Group as having always existed except that the capital reserves presented in the Group balance sheet are those of the Company in all years and not Plastics Capital Trading Limited.
10 Accounts
Copies of the interim accounts may be obtained from the Company Secretary at the Registered Office of the Company: St Mary's House, 42 Vicarage Crescent, London, SW11 3LD.