PLASTICS CAPITAL
Q3 revenues ahead of expectations / Synpac integration proceeding well / Palagan operation's sales weaker as it undertakes strategic re-adjustment
UK-based niche plastics manufacturer Plastics Capital (London / UK; www.plasticscapital.com) has announced group revenues for the third quarter 2016 had been ahead of expectations due to what it called “stronger than anticipated demand”. In a trading update the firm said that while gross profit margins had remained good, they were historically lower in the period, due to the integration of the Synpac acquisition which it undertook in July of last year (see Plasteurope.com of 22.07.2016).
Plastics Capital said within its Industrial division, which accounts for around 35% of turnover, bearings and mandrel sales had been strong during the period, supported by new business wins that had entered production in the current financial year, as well as growing demand from US customers.
Its film operation had witnessed what Plastics Capital called a “varied year so far”. The Flexipol high-strength film packaging business had continued to grow sales and profits, while Synpac had traded in line with expectations at the time it was acquired last year.
The company said Palagan, another high-strength packaging film operation, had experienced some weakness in trading “as it made important changes to its business strategy designed to position it for longer term growth”. Plastics Capital said it anticipated taking between six and 12 months to implement such changes, which included investment in the “recruitment, training and development of operational staff, the introduction of new films and the development of some innovative products”.
Plastics Capital said within its Industrial division, which accounts for around 35% of turnover, bearings and mandrel sales had been strong during the period, supported by new business wins that had entered production in the current financial year, as well as growing demand from US customers.
Its film operation had witnessed what Plastics Capital called a “varied year so far”. The Flexipol high-strength film packaging business had continued to grow sales and profits, while Synpac had traded in line with expectations at the time it was acquired last year.
The company said Palagan, another high-strength packaging film operation, had experienced some weakness in trading “as it made important changes to its business strategy designed to position it for longer term growth”. Plastics Capital said it anticipated taking between six and 12 months to implement such changes, which included investment in the “recruitment, training and development of operational staff, the introduction of new films and the development of some innovative products”.
27.02.2017 Plasteurope.com [236317-0]
Published on 27.02.2017