Plastics Capital Plc (LON:PLA) posted strong rises in both revenues and profits for the first half driven by acquisitions and a solid underlying growth component.
The name is a giveaway – the company is a speciality is plastics, specifically plastic products used by industry.
Its main activities are bearings, mandrels used to make holes in hydraulic pipes, templates that help create cardboard boxes and polythene sacks and films. They aren’t sexy; they are, however, steady and reliable.
In the six months to September 30 Plastics’ sales were up 13.4% at £27.8mln (the underlying advance was 6.7% at constant currencies). Operating profit, meanwhile, increased just under 11% to £2.7mln.
The industrial arm grew its top line by 19.2%, while the films division was up 9.2%, buoyed by the Flexipol operation.
Synpac, bought in July for £3.1mln, is bedding in well, the company said.
Chairman Faisal Rahmatallah said: "Order books are healthy and we anticipate a significant improvement in performance during the second half year which will benefit from the seasonal demand upswing and a full contribution from Synpac.
“The board expects the group to continue to perform in line with expectations for the rest of the financial year."
The dividend was held at 1.46p a share.