Plastics Capital shares sink despite strong full-year results

Shares in Plastics Capital (LON:PLA) sunk over 3 percent at market open on Friday, despite disclosing a positive set of full-year results.

Revenue rose 29.5 percent to £65.78 million during the financial year, with underlying profit growing 7.1 percent to £4.4 million. EBITDA was also up 17.2 percent to £6.9 million, boosted by the acquisition of Synpac and a stream of new product launches.

The business reported strong like-for-like organic growth of 6.7 percent annually, with a pipeline of business won and still to go into production up £0.7 million to £5.5 million.

Chairman Faisal Rahmatallah called the 2017 financial year a “very good year for organic and acquisitive growth”, with the Industrial Division and Flexipol having “record years” for sales and profitability.

“In addition, Synpac, acquired in July 2016, has performed in line with expectations at the time of acquisition and has so far proved to be an excellent addition to our Films Division in terms of technology and customer reach.

“We expect that profits will benefit from the change programme being implemented at Palagan and the expiry of currency hedges taken out prior to Brexit.

“We continue to have a number of exciting projects that we will be investing in as the current financial year progresses. We believe these initiatives will help us to deliver good growth over the next few years and we anticipate another year of good progress,” Rahmatallah concluded.

Shares in Plastics Capital dropped over 3 percent at market open, but have since recovered to trade down 0.38 percent at 119.04 (1405GMT).