12 October 2018 – trading update
The company has issued a disappointing trading update covering the first half of its financial year due to a poor performance from its technical plastics business. Delays in three new medical programmes are the cause of this although these all entered production towards the end of the period and will therefore benefit the second half. The LED business continues to do well, winning new business although costs were higher than expected. As production increases, so should margins allowing the additional costs to be recouped. The company believes that full year forecasts can still be achieved although the results will be skewed towards the second half. In light of the uncertainties we reduce to HOLD.