Last checked at 17 Jan 2012 07:00
Plastics Capital plc
(The "Company" or the "Group")
Trading Update
Plastics Capital plc (AIM: PLA), the niche plastics products group, is pleased to provide a Q3 trading update and to confirm that the Company continues to trade broadly in line with market expectations.
Trading conditions remain challenging, reflecting global economic conditions, although new business is helping to offset a general softening in demand. The sales pipeline remains strong and its conversion into future revenues underpins the medium term prospects of the Group. By way of example, the Group's bearings division has recently converted a major design project to manufacture plastic bearing devices for a new customer based in the USA. The project, which is for a leading bathroom products company, is expected to be worth over £2m; sales for this project are expected to commence in 2013 and gradually build.
Cash flow continues to be strong and the Group's debt is falling ahead of expectations, as working capital and capital expenditure are managed prudently.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
"Despite the weak economic environment, the Group is performing well and should meet expectations over the final quarter. Looking into the next financial year, given our recent new business successes and assuming some improvement in the economic environment, I anticipate a year of significant progress."
Plastics Capital plc Tel: 020 7326 8423
Faisal Rahmatallah, Executive Chairman
Nick Ball, Finance Director
Cenkos Securities Tel: 020 7397 8900
Stephen Keys
Adrian Hargrave
Walbrook PR Ltd Tel: 020 7933 8780
Paul Cornelius Mob: 07866 384 707 or paul.cornelius@walbrookir.com
Helen Westaway Mob: 07841 917 679 or helen.westaway@walbrookpr.com
Notes to Editor
Plastics Capital is a consolidator of plastics products manufacturers focused on proprietary products for niche markets. The Group has four factories in the UK, one in Thailand and sales offices in the USA, Japan, China and India. Approximately 65 per cent of sales are exported to over 80 countries worldwide. Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness. The Group has approximately 300 employees.
Further information can be found on www.plasticscapital.com