PLASTICS CAPITAL
Components and films group upbeat despite profit dip / UK firm seeks to add capacity to boost volumes
Plastics Capital (London / UK; www.plasticscapital.com), the listed plastics films and industrial components specialist, has reported a 4% dip in annual pre-tax profit, despite posting a near-17% rise in turnover for the year.In the 12 months to 31 March 2018, the firm generated turnover of GBP 76.7m (EUR 86.7m), while adjusted pre-tax profit came in 3.7% lower than the previous year at GBP 4.3m.
The firm’s films division saw like-for-like sales up 27%, with the division generating GBP 42.3m, 55% of total revenues. The group said it developed and converted a number of key accounts during the year, driven by its product line and service provision, but also from adding new extrusion and conversion capacity in the last two years, and the collapse of a competitor during the year.
The films division’s margin was flat overall year-on-year, in spite of fluctuations in raw material prices. Plastics Capital said it recruited and trained 26 members of staff to the business, representing nearly a quarter of its production workforce, while new machinery expanded capacity by 24%. “The management effort and time required to accomplish all this, whilst customer demand is very strong, is considerable and reflects very favourably on our teams involved,” the firm added. The group said that as production capacity was increasingly being shared between its businesses, it had decided to bring them together under one management team.
The group’s industrial division, which posted revenues of GBP 34.5m, up 6.5% year-on-year, produces a range of products including plastic bearings for the automotive sector. Plastics Capital said 2.3 percentage points of the increase was due to organic growth, 3.7% was due to acquisitions carried out in the prior year and 0.5% was due to foreign exchange.
Looking ahead, chairman Faisal Rahmatallah said the group needed to add more capacity, particularly in the films division, as it continues to win and develop new business. “We would also like to manufacture certain films we currently purchase and convert because we do not have sufficient extrusion capacity. We would also like to make some investments to increase the interchangeability of production between our factories in Dunstable and Haslingden (Flexipol) to improve efficiencies.”
The firm’s films division saw like-for-like sales up 27%, with the division generating GBP 42.3m, 55% of total revenues. The group said it developed and converted a number of key accounts during the year, driven by its product line and service provision, but also from adding new extrusion and conversion capacity in the last two years, and the collapse of a competitor during the year.
The films division’s margin was flat overall year-on-year, in spite of fluctuations in raw material prices. Plastics Capital said it recruited and trained 26 members of staff to the business, representing nearly a quarter of its production workforce, while new machinery expanded capacity by 24%. “The management effort and time required to accomplish all this, whilst customer demand is very strong, is considerable and reflects very favourably on our teams involved,” the firm added. The group said that as production capacity was increasingly being shared between its businesses, it had decided to bring them together under one management team.
The group’s industrial division, which posted revenues of GBP 34.5m, up 6.5% year-on-year, produces a range of products including plastic bearings for the automotive sector. Plastics Capital said 2.3 percentage points of the increase was due to organic growth, 3.7% was due to acquisitions carried out in the prior year and 0.5% was due to foreign exchange.
Looking ahead, chairman Faisal Rahmatallah said the group needed to add more capacity, particularly in the films division, as it continues to win and develop new business. “We would also like to manufacture certain films we currently purchase and convert because we do not have sufficient extrusion capacity. We would also like to make some investments to increase the interchangeability of production between our factories in Dunstable and Haslingden (Flexipol) to improve efficiencies.”
06.07.2018 Plasteurope.com [240107-0]
Published on 06.07.2018