Plastics Capital full-year results to be in line with expectations

13th Feb 2017 09:14

(ShareCast News) - AIM-listed manufacturer Plastics Capital anticipates that full-year results will be in line with expectations after revenue in the third quarter exceeded forecasts.The plastics company said that third quarter revenue were ahead of expectations following stronger than anticipated demand, while the gross profit margins remain "good"but a little lower historically, due to a change in the business mix from the acquisition of Synpac, a manufacturer of vacuum bags and pouches in July 2016.Meanwhile, the company has increased investment in sales as well as on marketing and product development to drive the growth of the business and profits.Executive chairman Faisal Rahmatallah said: "Trading conditions are generally good and we are busy implementing the investments we have previously highlighted as key to fulfilling the group's five year strategy. We are very pleased with progress generally across the group and particularly in our two most substantial business areas, plastic bearings and specialist sacks."Overall, we anticipate that performance over the second half of the financial year will enable us to announce results that are in line with market expectations."In the industrial division, bearings and mandrel sales were strong during the third quarter, after new business wins and growing demand from the US.In December, the company agreed with its Italian distributor to take a minority stake in the business and also applied for patents for a new product development being undertaken with one of its Japanese distributors.The film division has had a varied year so far as the Flexipol business saw sales and profits grow but the Palagan business saw some weakness in trading as it made changes to the business, which the company anticipates that it will take another six to 12 months when Palagan will be able to increase sales and profitability.Shares In Plastics Capital were up 1.23% to 123.50p at 0836 GMT.