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.
Notably, mandrel sales have been strong during the first half of the current financial year and are currently up 50% year-on-year. This part of the business is benefitting from both a general improvement in market demand for our existing products, introduction of new products and the positive effects of our business development initiatives that have been introduced over the last 3 years. We believe that similar initiatives in our other divisions will produce positive results in the near future.
Within the bearings business, we have also won our first project for integrated plastic bearings to be used in automotive instrument control knobs since the beginning of the financial year. This project should contribute £200,000 sales per annum when in full production. A further six smaller projects in the bearings business have also been won since the start of the financial year amounting to a total annualised sales value of £600,000 when in full production. Instrument control knobs are expected to continue to be an exciting new application area for the Company with significant potential for further projects in the near future.
The industrial film packaging business has successfully completed the installation and commissioning of the new high speed extrusion line. New film compositions and types have been trialled and are being introduced into the market. We are confident that this investment will contribute significantly to profit growth henceforward.
Our creasing matrix business continues to drive forward in emerging markets where sales growth is strong due to the the provision of efficient technical solutions at large cardboard packaging companies companies, where we have converted more than twenty new accounts since the beginning of the financial year.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
“Our mandrels business is leading the way in innovation and business development. New products, technical service and solution selling have combined to achieve excellent conversion. This strategy is being followed across the group and we are confident that it is providing an excellent basis for future growth.”