30th Sep 2008 07:00
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For Immediate Release |
30 September 2008 |
Plastics Capital Plc
("Plastics Capital" or the "Company")
Trading Update
Plastics Capital PLC (AIM; PLA), the acquisitive plastics products manufacturer focused on proprietary products for niche markets, is pleased to provide the following update.
We currently expect performance for the full year to be broadly in line with market expectations. Trading conditions are challenging, particularly in the UK, Eurozone and US; however, management is firmly focused on maintaining momentum with our strategy, and delivering shareholder value creation.
Performance is expected to be skewed towards the second half of the year. This was anticipated by management and is a result of the Thailand facility coming on stream in the second half of the year, combined with profit enhancing synergies related to recent acquisitions being worked on during the current financial year, as well as other profit enhancing initiatives.
Thailand Facility
The Company is pleased to report that the opening of our production facility in Thailand is well advanced and going according to plan. Assembly activity has already commenced and moulding machines are currently being installed and commissioned with initial production due to commence in October 2008.
Acquisitions Update
Palagan, which was acquired in March 2008, is performing in line with the Board's expectations at the time of acquisition despite the UK's economic slowdown and significant raw material price inflation. Encouragingly, raw material prices are expected to stabilise, thus easing trading conditions.
The Group is busy with a number of interesting acquisition opportunities, most of which are synergistic to our current operations. We are hopeful that one or two of these projects can be concluded in the next six months or so.
Commenting on progress, Faisal Rahmatallah, Executive Chairman, said:
"The Company continues to build momentum through development of its niche businesses and related acquisitions. Our key projects and recent acquisitions are progressing well. Although global economic conditions are very uncertain at present, we are cautiously optimistic about prospects for the full year."
For further information contact:
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Plastics Capital |
0207 326 8423 |
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Faisal Rahmatallah / Nick Ball |
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Cenkos Securities |
020 7397 8924 |
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Stephen Keys / Beth McKiernan |
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Buchanan Communications |
0207 466 5000 |
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Ben Willey / Christian Goodbody |
Note to Editors:
Plastics Capital Plc
Plastics Capital successfully floated on AIM on 3 December 2007 and undertook a share for share exchange to acquire Plastics Capital Trading Limited with 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 factories in the UK, an assembly operation in Thailand and sales offices in the US and Japan. Approximately 70 per cent. of sales are exported to countries worldwide. Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness.
Further information can be found at www.plasticscapital.com
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