Plastics Capital Share Discussion Threads

[stegrego] 06/12/2010 08:15

Bought my first batch at 25p. Trying to add today, but cant get any stock atm.

Great results - should see 100p+ fairly quickly id hope.

[electronica] 06/12/2010 08:11

sivadnoj

I can't see full year eps at less than 15. At friday's price that puts PLA on a forward P/E of just over 4. That is stupid & will be corrected.

Well done Faisal & Nick & everyone at PLA & its subs.

[sivadnoj] 06/12/2010 07:41

Excellent results. Ahead of Cenkos EBITDA forecasts and throwing off cash. Bank debt reduced significantly. If full year eps is around 14 there is plenty more of the rerating to come. Thanks for flagging these up Glenn.

[sivadnoj] 03/12/2010 16:01

Interims on Monday. Cenkos have a note out dated 17 November with a TP of 100p. Assuming no seasonality to the business we should be looking for revenues around £15m and EBITDA of £2.7m.

An extract from the Cenkos note:

Plastics Capital's ("Plastics") shares declined from 103p at the beginning of 2008 to a low of 25p earlier this year. This fall largely reflected concerns over the level of net debt in the wake of the economic crisis. These concerns are now unwarranted as net bank debt has fallen from a peak of £19.6m in March 2009 to an anticipated level of £12.1m in March 2011 (2.2x prospective net debt to EBITDA). Additionally, initiatives taken to boost organic growth are having such an effect that we expect volumes to have recovered to their 2008 peak by March 2011. We expect these initiatives will deliver strong organic earnings growth in the longer term too. The following note describes Plastics' organic growth prospects in detail. Plastics' shares trade on 5.7x FY11, reducing to 4.7x FY12. We believe they will be re-rated to 12x FY12 earnings, a 132% increase on today's price. BUY

Sales Resources
Plastics' products offer unique technical advantages, but many customers have either been unaware of them or have taken a lot of convincing. To address this, over the last 2 years the Group has increased sales personnel by 35% and has replaced another 30%. This increased selling "pressure" is having a strong positive effect on new business "wins". Plastics has won 18 major new accounts over the last 18 months; for some of these the annual sales potential is £0.5-1.0m, and will take 24 months to reach full run-rate.

New Products and/or Capabilities
Plastics has been investing in the development of new product lines to penetrate new related market segments. Product lines either already introduced, or in the pipeline, include automotive hose and small diameter braided hose mandrel, narrow width and thin gauge industrial packaging, BRC accredited films, pressboard creasing matrix, composite metal/plastic ball bearings and integrated assemblies of plastic bearings, shafts and gears. Some of these products have already led to additional sales, whilst some will be introduced
during the next 12 months and will contribute significantly to sales growth thereafter.

China and India
Plastics has recently established a direct sales presence in China and India, and has also set up 2 new distributors in China. Currently, sales to customers in these two countries amount to approximately £0.6m annually. Management believes that the potential is to increase this ten-fold over the next 5 years.

[stegrego] 01/12/2010 23:17

These should knock out a sledge tool and make a few hundred thousand pieces!

[davidosh] 01/12/2010 22:41

Sadly I think the Sales Director has to be judged by results and they must have decided with a new CEO on board the hurdle has been set much higher. The new non exec is to give extra strength to communications within the City IMO but they may of course be planning something and need his strengths on board. I am sure things are fine there and the CEO is definately up for the challenge.

[glennborthwick] 01/12/2010 21:15

i was extremely disappointed to be honest. Luckily fundamentals are still fine but its certainyl upped the uncertainty and direction of loq

[davidosh] 01/12/2010 00:02

Glenn....What did you think about the LOQ news today ? OT but it is fairly quiet here.

[glennborthwick] 30/11/2010 18:56

lovely chart

[glennborthwick] 28/11/2010 20:24

would be nice if they could do me a freebie designing a tool to knock out some tubs for vending machines. Just cost me 12k for a tool

[electronica] 28/11/2010 10:06

glenn

I'm looking for 160-180p before the end of 2011. By that time will should have clear guidance on a ptp of £4.8m to £5m for FY2012 & we should be awarded a forward P/E of 8-9.

The forward P/E depends on further progress on the paying down of debt & some further re-rating as Faisal & Nick continue their excellent work in building a "fan club".

Also it looks likely that we will see an expansion of the group via a "bolt-on" or 2 during 2011.

[glennborthwick] 28/11/2010 09:05

my first target of 60p reached. over 100% rise in ayear. Now onto a pound.

[electronica] 26/11/2010 16:58

bokcr

Me too! See you there.

[bokchr] 26/11/2010 16:36

I know that some of us attended the last PLA presentation at t1ps office. There seems to be another one on the 8th December. I'm definitely going.

[sivadnoj] 24/11/2010 15:59

A bit of interest ahead of the interims. When I heard Faisal speak a few weeks ago he was unequivocal about the improvement in PLA's markets and referred to the tide coming in again and having a long way to go. Contrast that with other companies which, while meeting expectations, continue to express caution on the state of their markets. There's only so much cost cutting and restructuring that can be done.

[davidosh] 23/11/2010 21:42

I have only met Faisal and one of the non execs but I have spoken to Nick and I will certainly second that. Faisal came and presented at one of our Mello dinners and even brought some sample products along so that everyone understood the processes involved.

[electronica] 23/11/2010 21:24

glenn

And with excellent management. I've met both Faisal R & Nick Bull (FD) & they've got a real committment to shareholder value & shareholder communications.

I've been in for 8 months now & adding regularly - looking for at least 100p before the end of 2011.

[glennborthwick] 23/11/2010 21:01

great company

[davidosh] 23/11/2010 11:35

For those of you not aware the results are in two weeks....

Plastics Capital plc (AIM;PLA), the fast-growing specialist plastics products
group, will announce its Interim Results for the six months ending 30 September
2010 on 6 December 2010.

I am pleased they will be on a Monday morning...hopefully good news to start off the week and great timing for the presentation to investors on the 8th.

[sivadnoj] 23/11/2010 09:35

Cenkos' view (courtesy of ahem Plastics and Rubber weekly)

Strong organic growth predicted for Plastics Capital
By Barry Copping
Posted 19 November 2010 1:37 pm GMT
Specialist securities firm Cenkos has upbeat expectations for niche plastics products manufacturing group Plastics Capital ("Plastics").

Noting that Plastics' shares declined from 103p at the beginning of 2008 to a low of 25p earlier this year, largely reflecting concerns over the level of net debt in the wake of the economic crisis, Cenkos now finds these concerns unwarranted. Plastics' net bank debt fell from a peak of £19.6m in March 2009 to an anticipated level of £12.1m in March 2011 (2.2 x prospective net debt to EBITDA).


Additionally, initiatives taken to boost organic growth are having such an effect that Cenkos expects volumes to have recovered to their 2008 peak by March 2011, with strong organic longer-term earnings growth.


Plastics' products offer "unique" technical advantages, says Cenkos, but many customers have either been unaware of them or have taken a lot of convincing. Following a revamp of the group's sales operation, Plastics has won 18 new accounts over the last 18 months. For some of these the annual sales potential is predicted as £0.5-1.0m, taking 24 months to reach a full run-rate.


New product lines either already introduced, or in the pipeline, include automotive hose and small-diameter braided hose mandrel, narrow-width and thin-gauge industrial packaging, British Retail Consortium-accredited films, pressboard creasing matrix, composite metal/plastic ball bearings and integrated assemblies of plastic bearings, shafts and gears.


Some of these products have already led to additional sales, reports Plastics, whereas others will be introduced during the next twelve months and are predicted to contribute significantly to sales growth thereafter.


Plastics has recently established a direct sales presence in China and India, and set up two new distributors in China. Sales to customers in these two countries are currently reported as around £0.6m annually. Plastics' management believes that this could increase tenfold over the next five years.

[sivadnoj] 11/11/2010 15:02

Should get the interims in the next 10 days or so.

[penpont] 05/11/2010 19:57

Put in an order for a top up of 6k shares near the close today but only got 2k.

[glennborthwick] 12/10/2010 17:34

looking back at end of sept 2009 posts i thought we would go to 60p in a year so not far out.