30th Apr 2014 14:58
LONDON (Alliance News) - Plastics Capital PLC Wednesday said it expects trading in its last financial year to be in line with market expectations, as strong demand for its products drove up sales during the year.
The niche plastic products group said that sales in the year ended March 31, were driven by strong demand for hose mandrels, long, high-specification rods around which reinforced industrial rubber hoses are formed.
It said that operating profit margins for the year also improved, due to operational gearing, despite continued investments in business development.
"Demand has picked up gradually over recent months, our expansion in China is going well and new business activity continues to contribute," said Executive Chairman Faisal Rahmatallah in a statement.
Plastics Capital has been investing in new capacity and capabilities over the last year. It said it is confident that the investments will begin to pay off in the coming months and further ahead.
During the year, the group said it reinvested a large amount of its strong operating cash flow in new capital equipment.
It said that recent investments in the UK in new capacity and capabilities for industrial films were completed during the year.
"There are further opportunities for organic development across the group and we intend to capture these fully over the next year or so," the company said in a statement.
Plastics Capital said that during the year it saw continued progress in its rapidly expanding Chinese operations, boosted by the acquisition of Shengli. It said that business development for hose mandrels in China is also progressing well.
Shares in Plastics Capital were up 1.2% at 127.00 pence Wednesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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