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.
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.
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."