22 August 2019 – final results
The plastic products group has announced its results for the year to 30 April and these have revealed a 5.7% increase in revenue to £24.7m (2018: £23.4m), with underlying pre-tax profit rising by 2.1% to £580,000 (2018: £568,000). Earnings per share on the same basis were 0.75p (2018: 0.84p) and the dividend was maintained at 0.25p although this was the interim dividend as no final dividend has been proposed. Net debt at the end of the year had risen by £0.9m to £8.2m (2018: £7.3m) as the company continued its capital investment programme to take advantage of the market opportunities that are being seen. The group has entered into an agreement with Rotite Technologies Limited to accelerate innovation in the group’s gtowing range of products. The group has commissioned into production a state of the art recycling unit at its Haydock facility and this allows it to use high levels of recycled materials in the manufacture of many of its products. New products which are likely to produce benefits in the current financial year include new improved food packaging, flame retardant roof tiles for the construction industry and extruded road highway sound barriers. The group is concerned about the effects of Brexit as weaker sterling increases its costs although the group is taking action to mitigate these. In the short-term there seems likely to be an element of uncertainty about the group’s prospects but the longer term outlook is more promising. As a result we rate the shares as a LONG TERM BUY.