Niche plastics products group Plastics Capital has reported its half-year figures. The company revealed a pre-tax profit of £1.8m, down from just under £2m in the same period last year.
However, the company has seen a 7% year-on-year revenue growth outside Europe and remains upbeat about the opportunities available in both North America and China, where it is setting up a plant that will come on-stream later next year.
In order to build for a stable future and to maximise growth Plastics Capital has been focused on customers that will place annual orders in excess of £100,000 for “high-value, bespoke applications”.
The company has also focussed on taking cost out of the business, building cash flow and investing in its sales and marketing operation.
Commenting on these results, Faisal Rahmatallah, executive chairman, said: “Over the first half of the financial year, we have improved earnings per share, announced a doubling of the interim dividend and reduced net debt by another £2.6m.
“Ignoring mainland Europe, where sales are down due to the recession there, the group continues to perform well and new business wins continue. The board expects the company trade broadly in line with expectations for the rest of the financial year.”
Geoff Allum, an analyst at First Columbus Investments, said: “Plastics Capital has delivered a very creditable performance in the first half. Revenue was a little weaker than expected… however, the outlook remains very positive and management confidence was demonstrated by a far larger dividend increase than expected (double that paid in H1 last year).”