Plastics Capital plc (AIM: PLA), the niche plastics products group, announces an update on trading for the financial year to date and is pleased to confirm that the Company continues to trade broadly in line with market expectations.
Since the beginning of the financial year eight new key accounts have been added. This, together with new projects secured from existing customers, has the potential to deliver more than £2.0m of additional annual turnover over the coming two to three years. Notable key account successes include new hydraulic hose manufacturers in Mexico and the United States of America within the mandrel business and a new distributor for creasing matrix in Indonesia.
For the year to date, the total contribution from new business has offset lower sales to existing customers, particularly in the Industrial division, which mainly serves the capital goods markets. Looking forward, whilst there is little evidence to suggest demand from existing customers will alter in the near term, the Company believes that further new business already in in the pipeline will contribute meaningfully during the second half of the current financial year.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
“The success we are having on new business is enabling us to maintain sales in an environment where demand for industrial goods is weak. We are hopeful that this demand will improve during the next twelve months. Meanwhile, we are confident that our new business initiatives will continue to generate strong results.”