Plastics Capital plc (AIM: PLA), the acquisitive niche plastics products group, is pleased to announce that half year trading is in line with management forecasts and therefore currently expects performance for the full year to be in line with market expectations.
Trading conditions are starting to improve with volumes recovering somewhat from the abnormally low level experienced in the first half of the calendar year 2009. Cost reduction measures taken earlier in the year have all been successfully completed, and our companies are now fully focused on winning new business. Volume improvements are coming primarily from developing markets in Asia Pacific, and to a lesser extent North America.
All businesses are trading satisfactorily and have excellent potential for profitable growth as the global economy emerges from recession. Margins meanwhile remain satisfactory and cash flow is strong with debt being serviced in line with expectations.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
"We are seeing some initial signs of recovery in the markets we serve and should this be sustained, believe that the Group will benefit significantly as volumes increase."