15th Feb 2016 10:03
LONDON (Alliance News) - Plastics Capital PLC on Monday said trading has been broadly in line with market expectations, with good results for its Films division being offset by mixed conditions in its Industrial arm.
The plastics products company said revenue in the third quarter to the end of December rose against the first half of the financial year, with margins solid and trading profit growing.
The Films division has performed well, with new capacity added and synergies across the Flexipol and Palagan units in the business in line with its expectations. The business also should start to feel the benefit of cost cuts in the next 12 months, Plastics Capital said.
For its Industrial arm, the bearings business is trading in line, albeit with order conversion rates slower than anticipated, while the Matrix unit has continued to take a hit from a slowdown in emerging markets, though Plastics Capital said the period of de-stocking by its clients in the past 12 months is showing signs of coming to a close.
Demand weakness for the mandrels business has continued, however, and has been more significant than expected.
"Trading conditions remain somewhat variable reflecting global economic conditions, but I am pleased to say that financial performance is improving and the group is making very good progress on the key strategic initiatives that will drive its targeted growth," said Executive Chairman Faisal Rahmatallah.
"Overall, we anticipate that performance over the second half of the financial year will be broadly in line with market expectations," he added.
Shares in the company were up 4.4% to 95.00 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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