Plastics Capital plc (AIM: PLA), the niche plastics products group, is pleased to provide a Q3 trading update and to confirm that the Company continues to trade broadly in line with market expectations.
Trading conditions remain challenging, reflecting global economic conditions, although new business is helping to offset a general softening in demand. The sales pipeline remains strong and its conversion into future revenues underpins the medium term prospects of the Group. By way of example, the Group’s bearings division has recently converted a major design project to manufacture plastic bearing devices for a new customer based in the USA. The project, which is for a leading bathroom products company, is expected to be worth over £2m; sales for this project are expected to commence in 2013 and gradually build.
Cash flow continues to be strong and the Group’s debt is falling ahead of expectations, as working capital and capital expenditure are managed prudently.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
“Despite the weak economic environment, the Group is performing well and should meet expectations over the final quarter. Looking into the next financial year, given our recent new business successes and assuming some improvement in the economic environment, I anticipate a year of significant progress.”