Plastics Capital (AIM: PLA), the niche plastics products group, is pleased to announce that it expects performance for the full year to 31 March 2014 to be in line with market expectations.
During the period, sales have increased primarily due to strong demand for hose mandrels, and operating profit margins have improved due to the operational gearing inherent in the Group despite continued investments in business development. Operating cash flow has also been strong and, as planned, the Group reinvested a significant amount of this cash flow in new capital equipment during the year.
We are also pleased to report continued progress across our rapidly expanding Chinese operations. After the recent completion of the acquisition of Shengli, we are now the market leader for creasing matrix in China with 60 employees including a regional managing director and a finance manager. This infrastructure is enabling us to also further develop our other business areas in the region and during the last four months alone, we have secured three new plastic ball bearing projects worth over £250,000 in annualised sales value in total from Chinese CCTV camera manufacturers. Each project uses our standard CCTV platform, which has been especially developed for this application over the last three years. Business development for hose mandrels in China is also progressing very well.
In the UK, recent investments in new capacity and capabilities for industrial films have been completed and we are pleased with the results to date. There are further opportunities for organic development across the group and we intend to capture these fully over the next year or so.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
"Demand has picked up gradually over recent months, our expansion in China is going well and new business activity continues to contribute. We are pleased to see revenue growth again. We have also made investments in new capacity and capabilities over the last year, and are confident that they will pay off in the months and years to come.”