Plastics Capital (AIM:PLA) – acquisitions boost the numbers. Is the future more positive?
The niche plastics products manufacturer, announced preliminary audited results for the year ended 31 March 2015, which are broadly in line with house broker expectations with acquisitions boosting a somewhat disappointing year from legacy businesses. Does the future look more positive?
The Group is a claimed consolidator of plastics products manufacturers focused on proprietary products for niche markets. The year under review saw the material acquisition of Flexipol in November 2014 as well as a full year’s contribution from Beijing Higher Shengli Printing Science and Technology Co., Ltd (“Shengli”), a leading Chinese manufacturer of creasing matrix. Together the acquisitions enabled turnover to grow by 22% for the year. Flexipol was a material acquisition (maximum consideration £10.64m) doubling the scale of the Group’s activities in industrial packaging films. In the financial year ended 1st October 2014, Flexipol generated revenues of £15.7m and,…