Plastics Capital plc (AIM: PLA), the acquisitive niche plastics products group, is pleased to announce that trading continues to show improvement and currently expects performance for the full year to 31 March 2010 to be in line with market expectations.
All businesses are trading profitably and have encouraging potential for profitable growth as the global economy emerges from recession. Margins remain satisfactory and cash flow is strong with debt being reduced in line with expectations.
The Group continues to make good progress, with business development activity remaining a key feature for all our companies. In particular:
Our plastic ball bearings business ("BNL") and our hose manufacturing business ("Bell") have recently set up representation in China, to promote sales to potential local customers, of which many have been identified.
Our creasing matrix business ("C&T") has reached agreement with a leading distributor of box-making and printing consumables to distribute its matrices and ejection rubbers, providing a significant opportunity for sales growth over the next few years.
Our specialist film packaging business ("Palagan") have achieved BRC accreditation, thereby opening up sales opportunities with the food industry customers, which is a substantial sectof for this business.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
"We have some excellent organic growth opportunities in all our businesses. We believe that the strength of the Group, together with the ongoing economic recovery and Sterling weakness, positions us well for the future."