Plastics Capital (AIM: PLA), the niche plastics products group, is pleased to announce that it expects performance for the full year to 31 March 2012 be in line with market expectations. Sales concluded the year satisfactorily although still affected by the aftermath of the Thai floods. Profit margins have remained good, cash flow has been strong and debt continues to reduce in line with expectations.
We can report some important developments in our mandrel business, which has converted its first customer in the USA, currently the world’s most significant market, and has also received its first production trial orders in China, which is likely to become the world’s most significant market in the future. These developments underline the ability of this highly technical business to penetrate new markets with high potential for future growth.
Our packaging division has seen an encouraging conclusion to the financial year with Q4 sales being the strongest of the financial year. This reflects some stabilisation of economic conditions as well as a conclusion to the unwinding of stock that had built up with customers over the previous 12 months.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
"The Japanese tsunami, Thai floods and the Eurozone crisis have made the 2011-12 financial year a challenging one. Despite this our business has continued to generate very good profits and cash flow. New business, particularly in international markets, is in the pipeline and this should underpin solid growth over the next financial year.”