Proactiveinvestors United Kingdom Synnovia PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Synnovia PLC RSS feed en Wed, 19 Jun 2019 23:45:43 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Synnovia to focus on further organic growth opportunities in 2020 ]]> https://www.proactiveinvestors.co.uk/companies/news/221054/synnovia-to-focus-on-further-organic-growth-opportunities-in-2020-221054.html Synnovia PLC (LON:SYN), formerly Plastics Capital, develops specialised film packaging and industrial consumer components. It has two main divisions - films and industrial. 

What it owns:

Synnovia owns: Bell Plastics Ltd, a maker of hydraulic hoses; BNL (UK) Ltd, which manufactures plastic rotating parts; C&T Matric, a packaging consumables firm; Flexipol Packaging Ltd, a specialist sacks and bags supplier; Palagan Ltd, which provides high strength film packaging; and Synpac Ltd, a maker of specialist food pouches.

Inflexion points: Plastics Capital changed its name to Synnovia in December to reflect the unification of the films division. The films division switched from being three separate businesses, each with their own sales forces and factories, to a unified division with just one sales force and one raw material procurement team. Synnovia expects “significant growth” in sales and profits for the year to 31 March 2019. Profit in the films division was affected by project delays in 2019 but this was offset by a strong performance in the industrial arm, led by growth in the bearings business. The projects have since been completed, paving the way for a return to profit growth in the films division in 2020. Synnovia continued to invest in adding capacity to support sales and profit growth in the year and said it would focus on “organic growth opportunities across the business” in 2020. Blue Sky:

Capital Network analyst Ed Stacy expects Synnovia will post revenue growth of 7% and earnings per share (EPS) growth of 2% for the year to March 2019. For 2020, he predicts a 18.6% jump in EPS and 9.7% rise in revenue.

“The shares are now trading on a FY March 2020e price/earnings (P/E) multiple of 7.4x,” he said.

“We believe that this discount multiple reflects market concerns about the issues that have affected films.

“We expect to see a material positive re-rating if the company can demonstrate steady progress towards market expectations during FY Mar 2020.”

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Tue, 28 May 2019 07:17:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/221054/synnovia-to-focus-on-further-organic-growth-opportunities-in-2020-221054.html
<![CDATA[RNS press release - Trading Update and Restatement of Accounts ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20190425070004_14050954/ Thu, 25 Apr 2019 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20190425070004_14050954/ <![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20190219070004_13973497/ Tue, 19 Feb 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20190219070004_13973497/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181220163736_13912105/ Thu, 20 Dec 2018 16:37:36 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181220163736_13912105/ <![CDATA[RNS press release - Result of General Meeting and Change of Name ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181220113547_13911578/ Thu, 20 Dec 2018 11:35:47 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181220113547_13911578/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181220070003_13910524/ Thu, 20 Dec 2018 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181220070003_13910524/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181214142351_13904798/ Fri, 14 Dec 2018 14:23:51 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181214142351_13904798/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181214103520_13904362/ Fri, 14 Dec 2018 10:35:20 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181214103520_13904362/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181205182748_13893179/ Wed, 05 Dec 2018 18:27:48 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181205182748_13893179/ <![CDATA[News - Plastics Capital firing on both cylinders as it looks to change name to Synnovia to better reflect its new unity ]]> https://www.proactiveinvestors.co.uk/companies/news/210604/plastics-capital-firing-on-both-cylinders-as-it-looks-to-change-name-to-synnovia-to-better-reflect-its-new-unity-210604.html Plastics Capital PLC (LON:PLA) is back, firing on both its cylinders, as it looks to change its name to Synnovia to better reflect the firm’s new unity.

The niche plastics product manufacturer recently reported first-half numbers in line with expectations and said its full-year performance will be ahead of last year.

WATCH: Plastics Capital puts in solid first-half performance with double-digit organic growth

For the six months to the end of September, the AIM-listed company said it saw encouraging signs of its Industrials division rediscovering its mojo after the bearings business suffered delays in two important product launches by customers in the corresponding period of 2017.

The firm's first-half revenue rose by 11.4% to £40.63mln from £36.46mln, with organic growth clocking in at 12.1% on a constant currency (CC) basis. Its Films division’s organic constant currency (CC) revenue growth was 12.0%, while the Industrial division’s growth on the same basis was 12.2%.

Plastic Capital's underlying earnings (EBITDA) rose 42.8% to £3.67mln from £2.57mln, with EBITDA up 29.0% on a CC basis, thanks largely to the Industrial division, which is more operationally geared than the Films division.

Meanwhile, profit before tax rose by 75.4% to £2.10mln from £2.0mln the year before, and net debt widened to £15.75mln from £14.99mln.

Films division reorganisation still to feed through

The group’s Films division recently switched from being three separate businesses, each with their own sales forces and factories, to a unified division with just one sales force and one raw material procurement team.

The company estimates that it will take another 6-18 months for all the management and system changes to bed down fully.

On the Industrial side, the group’s new business pipeline - projects already won but not yet in production or not yet at full production rate - increased to £5.8mln, underpinning management’s confidence that the business is on “a healthy growth trajectory”.

The firm added that the second half of the fiscal year had “commenced favourably” with the usual seasonal upturn seen in the Films Division and a continued good performance in the Industrial Division.

The group also said it has seen an improvement in the order book in its mandrel (spindle) business, which was the only part of the group that had a weaker than expected first half.

Plastics Capital’s management said it is mindful of the potential pitfalls ahead, such as trade wars, Brexit and concern over plastic waste, but if factors remain benign, the board said it remains confident about the outcome for the current financial year and future growth of the group for the medium to longer term.

Faisal Rahmatallah, the firm’s chairman said: "I am pleased to report continued strong organic revenue growth across the group. This is now being reflected in improved profitability as the mix of revenues in our two divisions has rebalanced and because we are now feeling the full effect of sterling's devaluation in 2016 after the Brexit vote.”

“Meanwhile, we have continued to invest heavily in business development, new products, production capacity and employee capabilities,” he added.

Rahmatallah concluded: “Order books are healthy and we expect good sales growth to continue for the foreseeable future if economic conditions remain satisfactory.”

WATCH: Plastics Capital mulls name change as sales and profitability improve

The company’s joint broker, Allenby Capital, described the results as “excellent”.

“Strong organic growth in the operationally geared bearings business, continued progress in the creasing matrix activities and another period of encouraging growth in films, led to revenue growth for the group of 12.1%. Investment in all business streams utilised the cash generated in the half year as well as additional borrowings, resulting in a modest increase in net debt from £15m to £15.7mln,” the broker’s analysts said.

“The group also benefited from the depreciation of sterling post the Brexit referendum leading, in part, to an increase in adjusted EBITDA of 42.8%.

“Trading in H2 has started well and we believe that the group is on track to meet our full-year earnings expectations and therefore we retain our fair value of 130p,” Allenby concluded.

Meanwhile, Ed Stacey analyst at research house Capital Network said he would be leaving his full-year forecasts for Plastics Capital unchanged after the interims but said the performance reinforced its confidence in those forecasts.

WATCH: Plastics Capital seeing the results of its pivot towards growth-oriented strategy

“The company lists various uncertainties that could affect the near-term or medium-term outlook – Brexit, trades wars, and the UK’s proposed plastics tax to be introduced in 2022. We believe that these are all well known to the market and do not represents new incremental risks,” Stacey said.

Plastics Capital shares rose around 2% after the reassuring interims but are still about 9% lower in the year to date at 105.60p.

Allenby's 130p fair value target indicates upside potential of almost a third, which would put the shares back near where they were in February 2017.

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Wed, 05 Dec 2018 15:21:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210604/plastics-capital-firing-on-both-cylinders-as-it-looks-to-change-name-to-synnovia-to-better-reflect-its-new-unity-210604.html
<![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181205101621_13892363/ Wed, 05 Dec 2018 10:16:21 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181205101621_13892363/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181205101226_13892360/ Wed, 05 Dec 2018 10:12:26 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181205101226_13892360/ <![CDATA[Media files - Plastics Capital seeing the results of its pivot towards growth-oriented strategy ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11407/plastics-capital-seeing-the-results-of-its-pivot-towards-growth-oriented-strategy-11407.html Mon, 03 Dec 2018 11:33:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11407/plastics-capital-seeing-the-results-of-its-pivot-towards-growth-oriented-strategy-11407.html <![CDATA[Media files - Plastics Capital puts in solid first half performance with double-digit organic growth ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11406/plastics-capital-puts-in-solid-first-half-performance-with-double-digit-organic-growth-11406.html Mon, 03 Dec 2018 11:13:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11406/plastics-capital-puts-in-solid-first-half-performance-with-double-digit-organic-growth-11406.html <![CDATA[News - Plastics Capital confident it is now firing on both cylinders ]]> https://www.proactiveinvestors.co.uk/companies/news/210373/plastics-capital-confident-it-is-now-firing-on-both-cylinders-210373.html Plastics Capital Plc (LON:PLA), the niche plastics product manufacturer, said its full-year performance will be ahead of last year, in line with expectations.

The company put in a solid first-half performance in the six months to the end of September, with encouraging signs of the Industrials division rediscovering its mojo after the bearings business suffered delays in two important product launches by customers in the corresponding period of 2017.

WATCH: Plastics Capital puts in solid first half performance with double-digit organic growth

Revenue rose 11.4% to £40.63mln from £36.46mln, with organic growth clocking in at 12.1% on a constant currency (CC) basis. The Films division’s organic CC revenue growth was 12.0% while the Industrial division’s growth was 12.2%.

Underlying earnings (EBITDA) rose 42.8% to £3.67mln from £2.57mln, with EBITDA up 29.0% on a CC basis, thanks largely to the Industrial division, which is more operationally geared than the Films division.

Profit before tax rose 75.4% to £2.10mln from £2.0mln the year before.

Net debt widened to £15.75mln from £14.99mln.

The full benefit of the reorganisation of the Films division is yet to feed through

The Films division recently switched from being three separate businesses, each with their own sales forces and factories, to a unified division with just one sales force and one raw material procurement team.

Management estimates it will take another 6-18 months for all the management and system changes to bed down fully.

On the Industrial side, the new business pipeline (projects already won but not yet in production or not yet at full production rate) increased to £5.8mln, underpinning management’s confidence that the business is on “a healthy growth trajectory”.

The company said it would be seeking shareholder approval on December 20 to change the company’s name to Synnovia.

The second half of the fiscal year has “commenced favourably” with the usual seasonal upturn in the Films Division and continued good performance in the Industrial Division.

The group has seen an improvement in the order book in its mandrel (spindle) business, which was the only part of the group that had a weaker than expected first half.

Management is mindful of the potential pitfalls ahead, such as trade wars, Brexit and concern over plastic waste, but if these can be factors remain benign, the board remains confident about the outcome for the current financial year and future growth of the group for the medium to longer term.

"I am pleased to report continued strong organic revenue growth across the group,” said Faisal Rahmatallah, the chairman of Plastics Capital.

“This is now being reflected in improved profitability as the mix of revenues in our two divisions has rebalanced and because we are now feeling the full effect of sterling's devaluation in 2016 after the Brexit vote. Meanwhile, we have continued to invest heavily in business development, new products, production capacity and employee capabilities,” he added.

“Order books are healthy and we expect good sales growth to continue for the foreseeable future if economic conditions remain satisfactory,” Rahmatallah said.

Analysts' reaction

Research house Capital Network said it would be leaving its full-year forecasts unchanged after the interims but said the performance reinforced its confidence in those forecasts.

“The company lists various uncertainties that could affect the near-term or medium-term outlook – Brexit, trades wars, and the UK’s proposed plastics tax to be introduced in 2022. We believe that these are all well known to the market and do not represents new incremental risks,” Capital Network said.

Shares in Plastics Capital currently trade at 106p, up 1.5p.

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Mon, 03 Dec 2018 08:37:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210373/plastics-capital-confident-it-is-now-firing-on-both-cylinders-210373.html
<![CDATA[RNS press release - Half-year Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181203070004_13887907/ Mon, 03 Dec 2018 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181203070004_13887907/ <![CDATA[RNS press release - Notice of Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181116110141_13870180/ Fri, 16 Nov 2018 11:01:41 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181116110141_13870180/ <![CDATA[Media files - Plastics Capital PLC mulls name change as sales and profitability improve ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10765/plastics-capital-plc-mulls-name-change-as-sales-and-profitability-improve-10765.html Mon, 08 Oct 2018 11:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10765/plastics-capital-plc-mulls-name-change-as-sales-and-profitability-improve-10765.html <![CDATA[News - Plastics Capital anticipates a year of further good progress ]]> https://www.proactiveinvestors.co.uk/companies/news/206464/plastics-capital-anticipates-a-year-of-further-good-progress-206464.html Plastics Capital PLC (LON:PLA), the niche plastics product group, traded in line with expectations in the six months to the end of September.

Sales have continued to grow at double-digit percentage rates compared to last year and profitability has improved as the revenue mix shifted towards the higher margin Industrial Division.

READ: Plastics Capital’s films division enjoys record year

The company said it is now enjoying a tailwind from currency fluctuations.

The Films Division has continued to perform well and is expanding its capabilities; barrier film extrusion, high-quality printing and specialist sack making capacity are all being added to enable the division to serve its existing customers more comprehensively in the future and to create the opportunity to acquire new customers.

The Industrial Division has performed well over the last six months achieving double-digit growth over the same period last year when sales were disappointing.

The bearings business suffered a setback due to delays and weak demand on two large projects but those projects have now picked up while demand from other customers has been strong.

The matrix business has also performed well and is seeing strong sales growth.

The mandrel business got off to a good start to the fiscal year but the order book weakened significantly as the year wore on and is currently below budget.

Good start to the year

The company said it is considering a name change to reflect the fact that its business relies on the ability to find innovative solutions to its customers' problems in niche market applications rather than on plastics technology.

"Significant organic growth is being achieved across both our divisions,” said Faisal Rahmatallah, the chairman of Plastics Capital.

“Except for our mandrels business, the order books are healthy. We continue to add capacity to fulfil this demand and to enable future growth thereafter. We acknowledge the issue of plastic waste and whilst the public focus is on single-use consumer products, which is an area we do not compete in, we are taking significant steps to address it in whatever way possible,” he added.

“We have made a good start to the year and anticipate a year of further good progress," Rahmatallah concluded.

Allenby Capital left its full-year forecasts unchanged after the trading update.

"In an otherwise positive trading update, the only negative was that the order book for mandrels has weakened. Nevertheless, we remain comfortable with our FY2019 and FY2020 forecasts that were set in July and make no changes. We are also happy to retain our fair value of 130p," the broker said.

Shares in Plastics Capital were unchanged at 113p.

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Fri, 05 Oct 2018 08:49:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206464/plastics-capital-anticipates-a-year-of-further-good-progress-206464.html
<![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181005080002_13817974/ Fri, 05 Oct 2018 08:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20181005080002_13817974/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180828083626_13769354/ Tue, 28 Aug 2018 08:36:26 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180828083626_13769354/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180730143633_13736412/ Mon, 30 Jul 2018 14:36:33 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180730143633_13736412/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180725135449_13731231/ Wed, 25 Jul 2018 13:54:49 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180725135449_13731231/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180716081304_13718725/ Mon, 16 Jul 2018 08:13:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180716081304_13718725/ <![CDATA[RNS press release - Annual Financial Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180709134630_13710787/ Mon, 09 Jul 2018 13:46:30 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180709134630_13710787/ <![CDATA[Media files - Plastics Capital 'at an exciting stage' with growth plan now delivering results ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9759/plastics-capital-at-an-exciting-stage-with-growth-plan-now-delivering-results-9759.html Mon, 02 Jul 2018 15:28:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9759/plastics-capital-at-an-exciting-stage-with-growth-plan-now-delivering-results-9759.html <![CDATA[Media files - Plastics Capital enjoys 'staggering' growth in its films division ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9755/plastics-capital-enjoys-staggering-growth-in-its-films-division-9755.html Mon, 02 Jul 2018 11:26:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9755/plastics-capital-enjoys-staggering-growth-in-its-films-division-9755.html <![CDATA[News - Plastics Capital's films division enjoys record year ]]> https://www.proactiveinvestors.co.uk/companies/news/199927/plastics-capital-s-films-division-enjoys-record-year-199927.html The financial year just ended was “an outstanding year for organic growth”, Plastics Capital Plc’s (LON:PLA) chairman, Faisal Rahmatallah, said.

The year to the end of March 2018 was a particularly strong one for the films division, which saw a 27% year-on-year increase in like-for-like sales and a 26% increase in underlying earnings (Ebitda).

READ: Plastics Capital's revenues boosted by sales of wrappings and films

Group revenue rose 16.6% to £76.73mln from £65.79mln the year before and was up 13.0% on a like-for-like basis. The top-line was a bit higher than the consensus forecast of £76.6mln.

Adjusted Ebitda edged up 1.9% to £7.03mln from £6.9mln the previous year, while adjusted profit before tax slipped 3.7% to £4.19mln from £4.35mln, but was ahead of the median forecast of £4.00mln from the estimates of analysts that follow the stock.

The company, which specialises in producing plastic products for industry, such as mandrels (rods used to make holes in hydraulic pipes), said organic growth was so strong that it opted not to reintroduce dividend payments as it believes the money would be better deployed growing the business.

Trading in the current financial year has been “relatively good”, making up for weak momentum at the end of the previous financial year.

The group’s bearings business has not suffered the sort of disappointing start to the year it experienced last year, although Rahmatallah conceded there is still some way to go for the board to be satisfied that the right momentum is being achieved in this business.

READ: Plastics Capital sales growth picking up a shade slower than expected

"FY2018 has been an outstanding year for organic growth, particularly in our films businesses. To capitalise on this, we have recruited and trained new staff, invested in new facilities and equipment, and raised equity capital to make sure that we have scope for further growth as we move into the next financial year. As a result, our operating profit margin has reduced somewhat during the year but we consider this to be a sensible trade-off for the creation of long-term shareholder value,” Rahmatallah said.

The Plastics Capital chairman added that the group should see some improvement to margins as losses incurred over the last two years from currency hedges taken out pre-Brexit fall away.

“We continue to have a number of exciting projects that we will be investing in as the current financial year progresses. We believe these projects will help us to deliver good growth over the next few years and we anticipate that this year will be another year of good progress," he added.

Strong results

Ed Stacey, an analyst at Capital Network, said it was a strong set of results.

“Revenues of £76.7m and EPS of 9.5p are both slightly ahead of our forecast, which was last updated at the time of the detailed Plastics Capital trading update on May 2.

“The most important headline metric, in our view, is the organic (like-for-like) revenue growth of 13.0%, which reflects a strategy shift undertaken last year to focus more on top-line growth,” Capital Network added.

“We believe that the current valuation at a Mar2019 P/E of 9.3x represents an interesting entry point in light of these growth dynamics,” the research house concluded.

WATCH: Plastics Capital's film division enjoys record year

The company’s joint broker, Allenby Capital, said the results were in line with its previously reduced expectations, with the strong growth from the Film division offset by a disappointing outcome from the Industrial division, particularly BNL, the unit that manufactures plastic ball bearings and related assemblies.

“The disappointment arose through the volatile call-off on plastic components from two of BNL’s key customer projects. Excellent growth in the lower margin Films business was insufficient to make up the ground lost in the higher margin and leveraged Industrial division,” Allenby noted.

“Capital investment continues to be required to support strong organic growth and the final dividend was passed, contrary to our expectations. We anticipate a stronger performance from Industrials in the current year which, together with continued growth in Films, should allow our FY2019 forecast to at least be maintained and keep the group on track to achieve its five-year growth plan through to FY2020,” the broker said.

Shares in Plastics Capital were down 0.4% at 110p.

--- adds broker comment, share price and video link ---

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Mon, 02 Jul 2018 07:41:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199927/plastics-capital-s-films-division-enjoys-record-year-199927.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180702070004_13700538/ Mon, 02 Jul 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180702070004_13700538/ <![CDATA[RNS press release - Notice of Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180622070005_13689605/ Fri, 22 Jun 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180622070005_13689605/ <![CDATA[Media files - Plastics Capital's films business growing 'stunningly well' ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9203/plastics-capital-s-films-business-growing-stunningly-well--9203.html Thu, 03 May 2018 12:06:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9203/plastics-capital-s-films-business-growing-stunningly-well--9203.html <![CDATA[News - Plastics Capital's revenues boosted by sales of wrappings and films ]]> https://www.proactiveinvestors.co.uk/companies/news/196219/plastics-capital-s-revenues-boosted-by-sales-of-wrappings-and-films-196219.html Plastics Capital (LON:PLA) saw "exceptionally strong" sales over the year just ended even though growth moderated near the end.

Films (food wrapping and the like) did particularly well with a record year for Flexipol, while there was a recovery at Palagan and good performance from Synpac. 

WATCH: Plastics Capital's films business growing 'stunningly well'

Management of these three companies is being consolidated due to their shared production. 

Industrial was mixed with strong growth in mandrels (tubing) offset by bearings where delays on two large projects have been an issue throughout the year.

Bearings have a significant impact on group profits due to the high fixed costs of manufacturing, so this will hit the full year outcome. 

Net debt at the year-end was £14.7mln or £1.5mln lower than the prior year.

Faisal Rahmatallah, executive chairman, said he was pleased with the organic growth.

Plastic Capital had made the decision to invest heavily in the business and Rahmatallah said the two consecutive years of strong revenue growth illustrated this was making a sustainable difference. 

“We can see this continuing as we move into the current financial year."

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Wed, 02 May 2018 07:52:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/196219/plastics-capital-s-revenues-boosted-by-sales-of-wrappings-and-films-196219.html
<![CDATA[RNS press release - Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180502070012_13626584/ Wed, 02 May 2018 07:00:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180502070012_13626584/ <![CDATA[RNS press release - UK Investor Show ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180411110238_13600435/ Wed, 11 Apr 2018 11:02:38 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180411110238_13600435/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180316142242_13570559/ Fri, 16 Mar 2018 14:22:42 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180316142242_13570559/ <![CDATA[News - Plastics Capital sales growth picking up a shade slower than expected ]]> https://www.proactiveinvestors.co.uk/companies/news/192408/plastics-capital-sales-growth-picking-up-a-shade-slower-than-expected-192408.html Plastics products group Plastics Capital Plc (LON:PLA) had mixed news for shareholders, reporting continued strong sales growth, albeit lower than expected in its Industrial Division.

Sales growth in the Films Division has been exceptional, the company said, while growth in the Industrial Division has improved in the second half of the financial year (which runs to the end of March), but not as much as expected when the group reported its interims in December.

READ: Plastics Capital: Impervious to cyclical blips, set for growth

As a result of the improvement in sales growth not coming through as fast as anticipated in the Industrial Division, the group now expects sales and adjusted underlying earnings (EBITDA) will be marginally below current market expectations.

"We continue to see very strong sales growth particularly in the Films Division, which has traditionally been our steadiest business area,” said Faisal Rahmatallah, the executive chairman of Plastics Capital.

“Our bearings business is picking up more slowly than we expected and this will impact this year's results; however, the overall rate of travel of sales and profits growth across the entire group is good and the board believes profitability will follow sales as investments we have made over the last two years bed down," he added.

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Thu, 01 Mar 2018 08:02:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/192408/plastics-capital-sales-growth-picking-up-a-shade-slower-than-expected-192408.html
<![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180301070011_13550148/ Thu, 01 Mar 2018 07:00:11 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20180301070011_13550148/ <![CDATA[Media files - Plastics Capital expecting surprise boost in films' sales to continue ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/8497/plastics-capital-expecting-surprise-boost-in-films-sales-to-continue-8497.html Wed, 06 Dec 2017 11:05:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/8497/plastics-capital-expecting-surprise-boost-in-films-sales-to-continue-8497.html <![CDATA[News - Plastics Capital's sales surge to boost second-half profits ]]> https://www.proactiveinvestors.co.uk/companies/news/188330/plastics-capital-s-sales-surge-to-boost-second-half-profits-188330.html Buoyant demand for its films and mandrels lifted sales at Plastics Capital Plc (LON:PLA) by almost a third in its latest half year.

Revenues rose 31% to £36.6mln, with organic growth of 13.5%, though earnings were held back by a combination of heavy expenditure on plant upgrades, raw material price rises and adverse currency movements.

READ: Plastics Capital on track for a “year of good progress” after solid first-half performance

Underlying profits [EBITDA] dropped by 6% to £2.6mln, though Plastics expects the second half to start to see the benefits of its recent spending.

Full-year profits are expected to be well ahead of the £4.35mln seen last year, but slightly below market forecasts.

Films, used to wrap food and make bags and sacks, increased revenues by 18.9%, while sales of mandrels, used as the template to make holes in products, jumped 40%.

Faisal Rahmatallah, executive chairman, said the first half trends had continued in the second part of the year with films and mandrels still going well, a steady performance in the matrix group and slower growth than expected in the bearings business.  

READ: Plastics Capital upbeat after 'very good year' for growth

Bearings, though, will hold back the half though it is seeing higher order conversion than the previous year while Rahmahtallah is also confident of a significant currency boost for the group next year once the sterling currency hedges expire.

“Order books are healthy and we anticipate a significant uplift in profitability during the second half of the financial year which should benefit from the seasonal demand upswing and new business coming on stream.“ 

Broker Allenby Capital said the organic revenue growth at 13.5% year-on-year was almost double a year earlier and well above the internal target of between 5%-10% annually.

Significant investment of £3mln has been undertaken and some improvement is anticipated in the second half but not enough to recover all of the lost ground compared to last year.

The broker's forecasts for this year’s earnings have been reduced by 9.8% from 12.2p to 11p though 2018/19 forecasts are unchanged.

Shares dipped 2% to 123.5p.

--adds broker comment, share price --

 

 

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Wed, 06 Dec 2017 07:39:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/188330/plastics-capital-s-sales-surge-to-boost-second-half-profits-188330.html
<![CDATA[RNS press release - Half-year Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171206070005_13455231/ Wed, 06 Dec 2017 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171206070005_13455231/ <![CDATA[RNS press release - Notice of Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171120093833_13437153/ Mon, 20 Nov 2017 09:38:33 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171120093833_13437153/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171117105437_13435553/ Fri, 17 Nov 2017 10:54:37 +0000 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171117105437_13435553/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171005154849_13387819/ Thu, 05 Oct 2017 15:48:49 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171005154849_13387819/ <![CDATA[RNS press release - Director/PDMR Dealing and Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171003124352_13384374/ Tue, 03 Oct 2017 12:43:52 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171003124352_13384374/ <![CDATA[News - Plastics Capital on track for a “year of good progress” after solid first-half performance ]]> https://www.proactiveinvestors.co.uk/companies/news/184901/plastics-capital-on-track-for-a-year-of-good-progress-after-solid-first-half-performance-184901.html Niche plastics products group, Plastics Capital Plc (LON:PLA), has told investors it enjoyed a solid first half, leaving it well-placed for the rest of the year.

Plastics said trading in the six months to the end of September was ahead of the prior year, primarily driven by strong organic sales growth across the board.

Films division best performer

The Films division was the standout performer though, with sales jumping “significantly” in the period.

Flexipol – its specialist sacks and bags business – has a record order book as it heads into a busy time of the year, while Palagan continues its recovery with volumes up 14% compared to the first half of 2016.

The company did note that increasing raw material prices had affected margins in this division slightly.

Industrial sales up 10%

The Industrial business was hardly flagging though, with sales rising 10% year-on-year, although Plastics had hoped for something even better.

Sales at its bearings business were lower than expected due to delays in orders received on projects from two key accounts.

It added that it expects things to pick up slightly on this front in the second half.

READ: Capital Network's Ed Stacey on Plastics Capital Plc full year results

Demand in its matric business has been “steady” as it works on integrating the complementary distributors and manufacturers acquired over the past year or so.

As for the mandrel business, that has “grown substantially” in the opening six months on 2017 as it continues to add production capacity.

The order book “remains strong”, Plastics said, and it expects continued growth in this arm throughout the second half.

‘Expecting a year of good progress’

"Strong organic sales growth is being achieved broadly across the group, although it has been stronger than expected in our Films Division and less so in our Industrial Division,” said chairman Faisal Rahmatallah.

“The three relatively small acquisitions made last year are performing well.

READ: Plastics Capital upbeat after 'very good year' for growth

“The capacity that we have recently put in place is already being well utilised and we will continue to invest to take advantage of the growth opportunities that we see in front of us.  We anticipate a year of good progress."

Shares were down 8.5% to 110.24p in early deals on Monday.

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Mon, 02 Oct 2017 08:19:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/184901/plastics-capital-on-track-for-a-year-of-good-progress-after-solid-first-half-performance-184901.html
<![CDATA[RNS press release - Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171002070004_13381546/ Mon, 02 Oct 2017 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20171002070004_13381546/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20170801154203_13315673/ Tue, 01 Aug 2017 15:42:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20170801154203_13315673/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20170712113248_13292594/ Wed, 12 Jul 2017 11:32:48 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20170712113248_13292594/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20170711091924_13290756/ Tue, 11 Jul 2017 09:19:24 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20170711091924_13290756/ <![CDATA[RNS press release - Annual Financial Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20170707164126_13288417/ Fri, 07 Jul 2017 16:41:26 +0100 https://www.proactiveinvestors.co.uk/companies/rns/788/LSE20170707164126_13288417/