Plastics Capital plc (AIM: PLA) – reassuring trading update
A reassuring trading update from the niche plastics products group who confirmed that trading was broadly in line with market expectations – year ending 31st March consensus estimates are for normalised pre-tax profit of £3.94m and earnings per share of 10.56p.
Management commented that trading conditions remain challenging although new business is helping to offset a general softening in demand. The Group’s bearings division (BNL) recently converted a major design project for a bathroom products company to manufacture plastic bearing devices for a new customer based in the USA. The project is expected to be worth over £2m with sales expected to commence in 2013. It’s pleasing to note that cash flow continues to be strong and the Group’s debt is falling ahead of expectations – net debt at 30th Sept 2011 was £11.2m having fallen 24% from the comparable period.…