PLASTCS CAPTAL: interims reassure and give the shares a boost
Interim results for the 6 months ending 30th September 2009 from the niche plastics products manufacturer reassured the market and gave the share price a much needed boost. Investor’s Champion has followed the plastics specialist since float.
The results statement commented that volumes are starting to recover from low point in first half calendar 2009 with international sales leading the recovery and now representing 62% of total. As many other UK based exporters have experienced, sterling weakness is boosting revenue, margins and competitiveness; the group hedges forward approximately 12-18 months to assist with the predictability of earnings and cash flow. The strong cash flow has resulted in net debt reduced by £1.5m in first half. Despite suffering a 14% reduction in turnover the group achieved similar levels of earnings before interest, tax depreciation and amortisation (EBITDA) and…