Plastics Capital (AIM: PLA), the niche plastics products group, is pleased to announce that it currently expects performance for the full year to be ahead of market expectations.
Trading conditions since 30 September 2010 have continued to improve, with volumes increasing significantly relative to the same period last year. New business activity has continued to progress well with the following significant developments:
- Our Indian sales subsidiary, based in Mumbai, has won its first orders for creasing matrix from local Indian customers. Prospects for plastic ball bearings in India are also excellent.
- Seven key accounts (each with expected annual sales exceeding £100,000) have been won since 30 September 2010. This is in line with our targeted strike rate. The full benefit of these account wins will be felt in the next financial year.
- New project wins in our plastic ball bearings business have gathered pace significantly in the second half year with the pipeline for new projects continuing to strengthen. We now expect the current financial year to be close to a record year for new project wins, emphasising the progress made since the global economic crisis after which the vast majority of projects were delayed or aborted.
Raw material inflation continues to be a feature in some parts of our business but has been managed effectively. Margins meanwhile remain satisfactory and cash flow remains strong with debt reducing in line with our expectations.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
“There are excellent opportunities for growth in the markets we serve. The steps we have taken to increase business development activity are driving revenues and profits forward healthily. We will continue to add sales resources and production capacity as appropriate to deliver the revenue increases that we believe are achievable over the medium term.”