7 September 2017 – AGM statement
At today’s AGM the group will confirm that overall trading in the financial year to date is in line with expectations with the outperformance of the group’s LED Technologies division expected to offset the weaker performance of the Technical Plastics division. The latter has had a difficult start to the year with some projects delayed into the second half whilst there were also some operational issues although these have now been largely resolved. The second half is expected to produce a better performance with the new factory being built in India and the redevelopment of Mitcham progressing according to plan. LED Technologies is enjoying a good first half with good product sales on its various supercar lighting programmes and new business activity continues ahead of expectations. Net debt at the half year end is expected to be higher than at the year end due to capital expenditure and a higher level of working capital although this should fall in the second half. The shares have dropped back on the statement and we believe this has created a buying opportunity. BUY.