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. Its 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.…