Plastics Capital's investments pay off in first half

5th Dec 2016 11:15

(ShareCast News) - Plastics Capital's investments in new products has led to higher revenues across both its divisions.The AIM-listed plastics products manufacturer reported revenue rose by 13.4% to £27.8m in the six months ended 30 September 2016. Industrial Division revenue was up 19.2%, led by key accounts growth in bearings business. Films Division revenue was up 9.2%, led by continued growth of Flexipol, the company's packaging manufacturer.Sales from new projects that have yet to enter into production amount to £6.3m, up from £4.8m at the end of the previous period.Earnings before interest tax depreciation and amortisation (EBITDA) rose by 10.8% to £2.7m and profit before tax was up 7.3% to £1.6m.The firm's acquisition of Synpac Limited for £3.1m in July has made a "good initial contribution" to the company's profits. Synpac converts packaging films into vacuum bags and pouches used in food manufacturing and distribution.Expenditure on business development, new products and management rose by 18% during the period, with £1.3m invested in development and capacity expansion projects.Post Brexit vote, the devaluation of sterling has positively affected the business, contributing £0.2m to underlying EBITDA in the first half.Earnings per share were up 7.3% to 4.3p and dividend per share was constant at 1.46p.Executive chairman Faisal Rahmatallah said: "We continue to increase investment in business development, new products and additional capacity and capabilities. Order books are healthy and we anticipate a significant improvement in performance during the second half year which will benefit from the seasonal demand upswing and a full contribution from Synpac. The board expects the group to continue to perform in line with expectations for the rest of the financial year."The share price rose 2.99% to 120.50p at the close on Monday.