Plastics Capital Share Discussion Threads

[the anteater] 27/11/2012 07:50

Interim results uninspiring- profits lower year on year. It looks as though it will be difficult for them to make the £4m PTP analyst forecast for the full year, particularly as raw material costs have recently risen again.

[davidosh] 10/10/2012 15:33

I see a large purchase of 40k shares went through today at 74p which is a good show of support and confidence.

[paulypilot] 02/10/2012 22:04

LOL! The way I look at it David, is that lots of people have watched our interview with PLA's Chairman, and even if they didn't rush out to buy the shares imediately, it did at least put the company on the radar for many investors.

Personally I'm watching with interest, and may yet buy some shares, but I'd rather see the next set of results first to see how they're getting on. Also would like to see the debt come down a bit to nearer £5m. At that level it would be sufficiently de-risked.

Nice niche business, and good management.
It needs more acquisitions to make the existing structure cost-effective in my opinion. Cannot be done with bank debt, so more creative funding options are needed in my opinion.

Regards, Paul.

[davidosh] 02/10/2012 13:45

Somebody has only just caught up with watching a video from over the Summer...lol

[paulypilot] 02/10/2012 12:25

I wonder what's driven the sharp rise today? Up 5.5p to 72.5p (mid-price), an 8.6% rise. Very illiquid, so I guess that when anyone buys in any size, up it goes.

PP.

[cerrito] 14/9/2012 14:56

saw this the other say in the uk-analsyt daily report

First Columbus initiated coverage of Plastics Capital (PLA) with a "buy" recommendation and 90p target price. The broker believes that the plastic and rubber products manufacturer is set to benefit from a long period of investment, including acquisitions and management upgrades. First Columbus feels that the company is unique in the sector due to its strategy of focusing on niche, high margin markets rather than the more typical low-cost high volume model of most plastics companies. On the broker's forecasts, the shares trade on a prospective earnings multiple of 6.1 times for the 2013 financial year, falling to 5.6 times in 2014. The shares slipped by 0.5p to 65p.

[paulypilot] 10/9/2012 12:37

It seems to me that they are holding their own, but nothing more than that - which is OK given the difficult macro picture.

At some point this will make a nice cyclical recovery play, just not sure we're quite there yet. Growth is key. Huge bid/offer market spread & very little liquidity not helping either - although a decent broker can get round those issues.

Am keeping it on my watch list, am not quite ready to buy yet, as it looks like it might drift lower - think I'd like a bigger margin of safety with debt somewhat lower & another set of results to digest, before I jump in.

Regards, Paul.

[davidosh] 10/9/2012 10:59

In a worldwide downturn where orders are shrinking surely most companies will have declining revenues as companies reduce stock levels or simply recieve fewer orders! Plastics Capital are actually increasing the customer base to make up the shortfall which is highly commendable and pleasing.
Now imagine what happens when the markets grow again and stock levels are replenished and there is the added bonus of 20% more customers than they had going into the downturn??
The wider customer base is a real positive and certainly not jam tomorrow news.

[electronica] 10/9/2012 10:44

Shanklin

EPS growth is all very well & very welcome - but we are not seing the revenue growth that Faisal & Nick have been promising over the last 18 months. Without revenue growth we're not going to see a P/E rerating of PLA.

Debt reduction is also essential & welcome - but there were hints at the last Barbican presentation (in April, I think) that PLA gave that capital expenditure to secure future growth was being sacrificed.

It's time to hold management's feet to the fire I think.

[shanklin] 10/9/2012 09:19

If they achieve broker estimates, they'll have grown EPS by 25% and be on a current year P/E of just over 5, with (hopefully) debt continuing to be brought down.

[electronica] 10/9/2012 08:51

We're in some danger now of becoming a "jam tomorrow" company.

Come on Faisal & Nick! Its time to stop promising growth & to start delivering.

[huttonr] 10/9/2012 08:13

Cerrito - as you say, rather downbeat - not doing as well as I'd hoped but seems a basically sound company so keep hoping for better times to come. I suppose the problem is when?...

[cerrito] 10/9/2012 08:04

Rather a downbeat RNS to me; we are no longer trading in line with management's expectations but now broadly in line with management expectations. To me comments on macro environment more downbeat than they have been in the past.
The recent decline in the share price seems to have anticipated this and for me absolutely no reason to sell.

[electronica] 06/8/2012 08:29

paulypilot

Like you I'm not that keen on seeing the RNS system used as a PR tool - but I am always encouraged when a company keeps in touch with its shareholders.

Today's release looks to me like the product of the new brokers & points to their enthusiasm to fulfill their objective of building value for shareholders. PLA is v undervalued & we're all hoping (I think) for a correction to that situation.

[paulypilot] 06/8/2012 08:13

Struck me as strange to issue an RNS for only £0.5m p.a. sales, for a company with turnover of £32m. Not material, surely? If there was some additional significance to these particular contracts, then the RNS should have made that clear. But overall, I'm not a fan of putting out RNSs for small contract wins.

PP.

[cerrito] 06/8/2012 08:02

I agree good news and probably high margin business and one likes to think recurring ; £500k is 1.5% approx of annual revenue . My issue is that I do not know how many product lines fall by the way side so how many of these deals they have to win to stand still.

[davidosh] 06/8/2012 07:36

Nice new contract wins in new markets for PLA which should build steady recurring business in wider end user products. All helps and spreads the customer base too.

[strollingmolby] 30/7/2012 16:49

Cerrito - think David was referring to the ramp of another stock in the now-removed 285 post.

[cerrito] 30/7/2012 15:43

It does not affect PLA or its price.... just suggests that the AGM was very short and no shareholder went

[davidosh] 29/7/2012 21:58

How does that news affect PLA exactly ?

[cerrito] 29/7/2012 21:14

Did anyone make the AGM?
I was planning to but got delayed last Friday
Judging by the speed with which the RNS was put out saying all resolutions had been passed it was very quick.

[davidosh] 25/7/2012 15:31

There were many concerned here a few weeks back about the director resigning. I hope this has cleared that one up for starters.