We have previously described FY Mar2018e as a transitional year for Plastics Capital (LON:PLA), with the new investments pointing the way to accelerating revenue growth. On the revenue front results so far are encouraging, and we believe that earnings will follow in the next few years. Given these dynamics, we argue that the current share price represents an interesting entry point.Full report is available via Capital Network website
Plastics Capital (PLA.LON) has published a trading update for the financial year ended March 2017, ahead of full results expected at the start of July. We believe the statement confirms that company will report solid earnings growth y/o/y and strong progress in the overall business plan.
Plastics Capital Plc (LON: PLA) reported interim results (H1 end Sep 2017) on Wednesday 6th. These show positive progress on new business wins, reflected in the H1 organic revenue growth of 13.5%, and an increased pipeline of new business (see chart p2).
At the same time the company guided to a less favourable margin mix for FY Mar 2018, with some projects delayed in the Bearings business, and more of the FY revenue to come from the lower margin Films business.
Plastics Capital (PLA.LON) has reported FY results which are closely in line with our expectations (see table below). The company delivered 29.5% revenue growth and 6.5% earnings growth, reflecting M&A and organic improvement, but offset by the cost of fixing operational issues at the Palagan films business and new P&L investments for future growth elsewhere in the business (both issues previously disclosed).
No investment advice
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.
You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.
From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.