2 December 2014 – interim report
Disappointing interim results have been reported by the plastics products manufacturer Plastics Capital for the six months to 30 September. Revenues for the period rose by just 1.1% to £16.5m (2013: £16.4m), although adjusted pre-tax profits fell by 11.0% to £1.55m (2013: £1.74m). Earnings per share on the same basis were 4.6p (2013: 5.4p) although as a sign of confidence in the future the interim dividend was raised to 1.33p (2013: 1.00p). Steady progress was seen in the group’s packaging division, which has recently been strengthened with the acquisition of Flexipol, although the industrial division has suffered from slow sales in Europe and delays in bringing new products into production. The latter is expected to see an improvement in trading in the second half whilst the packaging division will see an initial contribution from Flexipol. As a result the group expects to meet full year expectations of pre-tax profits of £4.3m for earnings per share of 11.8p. We maintain our recommendation of BUY.