Plastics Capital plc (AIM: PLA), the acquisitive niche plastics products group, is pleased to provide an update on trading and announce that the Company's full year results for the year to 31 March 2009 are expected to be broadly in line with market expectations.
Trading conditions continue to be challenging with volumes being affected. There is some indication that the downturn is starting to bottom out, although we believe certain sectors will continue to be affected through 2009, and any improvement is likely to be gradual.
In response to these trading conditions, cost reduction measures are being implemented across the Group, primarily reducing headcount in line with lower demand. In addition, agreement has been reached to dispose of a small non-core operation, Mulberry Plastics.
Despite hedging costs being incurred in the short term, sterling weakness is having a positive impact on the Group, as over 50% of sales are exported and a large proportion is sold in US Dollars, Euros and Yen. Export focused sales and marketing activity remain at high levels as opportunities for each of the Group's subsidiaries to win new business continue to be substantial.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
"The Group remains relatively resilient in the face of the global downturn. By maintaining export focused sales and marketing activity, we are well positioned to benefit from sterling's weakness when global demand picks up."