Plastics Capital plc (AIM: PLA) the niche plastics products manufacturer, is pleased to announce an excellent financial year for new contract wins within its plastic ball bearings division (“BNL”), which is its largest division by revenue, in conjunction with the existing business performing in-line with management expectations.
We are pleased to announce that during the current financial year we have secured 18 new contracts worth a total incremental annual sales value exceeding £2.3m, which represents a 10% increase on the corresponding period last year. Of these new contracts, 30% is being delivered by seven new customers, so enlarging our customer base and providing opportunities for further contract wins with the same customers in the future; these successes reinforce our growth strategy.
In addition, we have recently secured our first project win for another local Chinese customer, the substantial textiles machinery manufacturer, Jen Haur Company Ltd. This is further evidence of the encouraging start made by the Group’s recently established Shanghai sales office.
Furthermore, the new projects pipeline for the bearings business has grown stronger with a particularly high number of excellent opportunities emerging within the automotive sector. The growth in the projects pipeline is being driven by customers becoming increasingly sensitive to the advantages associated with high specification plastic ball bearings as made by BNL; specifically issues like weight, design flexibility and cost.
Faisal Rahmatallah, Executive Chairman of Plastics Capital, commented:
“Our plastic ball bearings business has rewarded the investment we have made in business development activities over the last 2 years. New projects are coming through and will translate into revenue growth once tooling is complete and production orders start. I am confident that we will see further significant success in this area over the next 12 months too.”