Last checked at 19 Feb 2009 07:00
For Immediate Release 19 February 2009
Plastics Capital plc
(the "Company" or the "Group")
Trading Update
Plastics Capital plc (AIM: PLA), the acquisitive niche plastics products group, is pleased to provide an update on trading and announce that the Company's full year results for the year to 31 March 2009 are expected to be broadly in line with market expectations.
Trading conditions continue to be challenging with volumes being affected. There is some indication that the downturn is starting to bottom out, although we believe certain sectors will continue to be affected through 2009, and any improvement is likely to be gradual.
In response to these trading conditions, cost reduction measures are being implemented across the Group, primarily reducing headcount in line with lower demand. In addition, agreement has been reached to dispose of a small non-core operation, Mulberry Plastics.
Despite hedging costs being incurred in the short term, sterling weakness is having a positive impact on the Group, as over 50% of sales are exported and a large proportion is sold in US Dollars, Euros and Yen. Export focused sales and marketing activity remain at high levels as opportunities for each of the Group's subsidiaries to win new business continue to be substantial.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
"The Group remains relatively resilient in the face of the global downturn. By maintaining export focused sales and marketing activity, we are well positioned to benefit from sterling's weakness when global demand picks up."
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