3 May 2016 – trading update
The company has announced that it expects trading for the year ended 31 March 2016 to be in line with market expectations. This is reassuring and trading in the second half of the year was considerably ahead of that for the first half in terms of both revenue and profit before tax. Net debt at the end of the year was also in line with market expectations. During the last year the company has developed a pipeline of new products to be introduced during the next 12 months. It believes that these could generate strong organic growth over the next few years. Plastics Capital is also expanding capacity in industrial films, bearings and mandrels, where it anticipates capacity constraints in the near future. There has been confirmation that acquisitions remain an important part of the business strategy. Overall this is very positive news and we continue to rate the shares as a BUY.