26 March 2019 – trading update

The plastic products group has issued a profit warning following disappointing trading in the second half of its financial year.  Although the group reported pre-tax profits of £582,000 in the six months to 31 October 2018, the next four months were loss-making due to a slowdown in sales to the automotive industry and significant delays in delivery of products to a major on-line retailer.  The results for the year to 30 April are therefore likely to be well below expectations. The share price has fallen sharply on this news and it seems likely that this has been overdone.  We therefore think that for patient investors the shares are a SPECULATIVE BUY.