London-headquartered Plastics Capital has told investors that despite experiencing “a challenging 12 months” it expected its trading performance to be "in line" with market expectations for the financial year to the end of March, 2012.
The AIM-listed niche plastics group said sales “concluded the year satisfactorily”, although revenues were still being affected by the impact of the floods in Thailand late last year.
“Profit margins had remained good, cash flow has been strong and debt continues to reduce in line with expectations,” it added.
Cenkos Securities, the group’s broker, is forecasting turnover of £32m; earnings before interest, tax, depreciation and amortisation (EBITDA) of £5.4m, and pre-tax profits of £3.9m.
The group said it had made progress in its mandrel business, particularly in the US and China, while its packaging division had seen a strong performance in the last quarter, helped by “improving economic conditions and a conclusion to the unwinding of stock that had built up with customers over the previous 12 months”.
Plastics Capital’s executive chairman Faisal Rahmatallah, said natural disasters, such as the Thai floods and Japanese earthquake had made the 2012 financial year “a challenging one”.
“Despite this our business has continued to generate very good profits and cash flow.
“New business, particularly in international markets, is in the pipeline and this should underpin solid growth over the next financial year,” he added.