Plastics Capital Share Discussion Threads

[sivadnoj] 06/4/2010 11:41

Looks like the related party transaction might have spooked a few investors. At current market cap and assuming (1)net debt of £17.5m, (2) a repeat of H1 EBITDA, EV/EBITDA is around 4.9. Seems too cheap, assuming the banks stay on side.

[foxnil] 08/3/2010 11:59

If you are interested in quizzing management, the company is exhibiting at this show in April: www.masterinvestor.co.uk. They have a few free tickets available for shareholders and other interested parties if you email the organisers at [e-mail] quoting 'Plastics Capital shareholder'.

[sivadnoj] 01/3/2010 12:34

"All businesses are trading profitably and have encouraging potential for
profitable growth as the global economy emerges from recession. Margins remain
satisfactory and cash flow is strong with debt being reduced in line with
expectations. "

From February's trading update. Continued sterling weakness should be helping.

[glennborthwick] 23/2/2010 23:29

looking good value

[geraldus] 09/2/2010 12:55

Thanks foxnil,certainly a difference in earnings.

[foxnil] 09/2/2010 11:08

Tuesday's report on UK-Analyst is from GE&CR

Plastics Capital: Initiate coverage at 37p with a target price of 57p and recommendation of BUY

[geraldus] 08/2/2010 13:13

Last forecasts I saw was for a profit of £3.02 mill. on £27.9 turnover giving eps of 9.75p.Give or take a bit this must merit a higher price.Shares mag have tipped this previously,might get an update Thursday. - G.Spotts.

[glennborthwick] 08/2/2010 10:33

wonder what market forecasts are.

[sivadnoj] 08/2/2010 07:34

Looks like solid progress. Good news re further debt reduction.

[sivadnoj] 29/1/2010 16:11

Potential for a trading update in mid February if last year is a guide.

[glennborthwick] 11/12/2009 17:41

quite a full write up there. T
Lets hope a dreaded tip doest kybosh it.

[tomking2] 11/12/2009 11:47

AIM-listed Plastics Capital has suffered due to it being a UK-based manufacturer & exporter with a material debt burden...it has been competitive despite production being concentrated in the UK due to its focus on proprietary products for niche markets...Although the short-term strategy will focus on organic growth and paying down debt, rather than any further acquisitive growth, full-year forecasts suggest an underlying pre-tax profit of around GBP2.75 million, generating c.10p per share of earnings is feasible...

[sivadnoj] 25/11/2009 18:00

Picked up a few more today, rather more easily than the first lot.

[glennborthwick] 25/11/2009 17:37

would be good if they do get debt down to 13-14 million as propose by edison. would be full steam ahead during the recovery then.

[glennborthwick] 25/11/2009 17:33

excellent thanks

[strollingmolby] 25/11/2009 17:23

2-page update note available from Edison:

"The interims confirm that Plastics Capital has weathered a difficult six months yet doubts still remain over the strength of the recovery. At constant exchange rates revenue fell 18.6% to £12.1m vs H109, as a result of both volume and price reductions. However, reported profitability rebounded strongly due to rationalisation and favourable FX movements. Order book visibility remains constrained despite volumes increasing c 20% since Q409. Cost-cutting measures as well as the performance vs H209, a lower polymer price environment and reduced volatility in oil prices lead us to expect a stronger H2 performance."



More detailed notes from earlier in the year on link too.

[investinggarden] 23/11/2009 11:25

Plastics Capital sees recovery

[glennborthwick] 19/11/2009 22:48

yes two year old shuld be the plan. Should get rerated to 60p plus when they deliver 10p in June and then 13-15p the year after wen they should be 90p. Nice chart developing and they have come down a hell of a long way.

[sivadnoj] 19/11/2009 22:39

Glenn - thanks for flagging this up. I messed about trying to get inside the spread yesterday at 39p (without success) then ended up paying 46p today. Ho hum..I think it will be worth it.

[glennborthwick] 19/11/2009 22:26

hey probably havent updated it. i guess 10p will be there target.

[sivadnoj] 19/11/2009 22:23

I don't see how they can maintain an eps forecast of 7.5p when they have achieved 4.9p in the first six months with a positive outlook.

[glennborthwick] 19/11/2009 19:21

They are on target to pay off 4 million of debt at an average of 7% which should add 280 000 to the profits next year, without an improving economy. Factor in further thailand savings can see this being 60p in twelve months time.

[glennborthwick] 19/11/2009 19:17

Plastics Capital (PLA, 39.5p, £10.6m) Interims to 30 September 2009 reports a 6% decline in revenues to £12.9m (H109: £14.9m), a 140bp improvement in gross margins to 40.5%, an 11% decline in adjusted PBT to £1.6m (H109: £1.7) and an 18% fall in adjusted EPS to 4.9p (H109: 6.0p). The cash generative business has reduced net debt to £18.2m (FY09: £19.6m). Although these results seem poor, the group has made substantial improvements in PBT in comparison to H209's £0.27m – the group is benefiting from the cost rationalisations and the weak sterling. The current order book is stronger, but customers are cautious about their prospects in the coming months. Plastics will focus on taking advantage of the weak sterling to drive product innovation and expand sales representation geographically to generate organic growth. Acquisitions have been put on hold for the short-term. The group are keen to reduce net debt. Their broker continues to forecast 2010 PBT of £2.8m and EPS of 7.5p. The stock trades on 5.2x due to the serviceable £18.2m of net debt. Since our buy recommendation on 21/09/09 (share price 25.5p), the share has risen by 55%. We retain our BUY recommendation and upgrade our target price from 33p to 49p.

hoodless.