Plastics Capital Share Discussion Threads

[cerrito] 10/12/2015 21:57

a very thoughtful interview

[simon templar qc] 10/12/2015 17:37

When you look at the figures in detail the growth over the last 5 years is questionable. Basic eps is less than half the figure 5 years ago.

The yield is hardly supporting the share at the moment but is that a good use of cash?

Buy backs may have made better use of cash or even paid the debt down.

Or even the company paid no dividends at all over the last 5 years and paid cash for its acquisitions.

Looks like most trades been sells since results and holders locked in on decent holdings. Seems to me its difficult to get out now on even small trades.

I will be interested to see what davidosh has to say about the company interview?

By the way I did sell on the day of results but will keep the share on my monitor. I took the view the risks are increasing at the moment and the company has not delivered quite what was expected earlier in the year, the brokers also downgraded.

[my retirement fund] 09/12/2015 09:17

Agree quite funny comment too.

In reality they need an entire range of facts and figures at their disposal in their armoury to avert their own shortcomings in an environment when their job becomes a little more challenging and genuine leadership and teamwork is required to make headway.

Ultimately though these smaller public manufacturing groups all suffer the same fate of having expensive and often parasitic governance structures, rather than a dynamic enterprising management structure that their private counterparts so often share.

[nehpets81] 08/12/2015 23:20

I love how the are quoting EBITDA on constant currency terms (fairly standard) and constant raw material prices! Why not just assume a constant sales price too and have done with it?!

[simon templar qc] 08/12/2015 12:49

Bad manufacturing figures out today and more gloom from both China and Europe as well, the latter GDP figures show slower GDP growth.



Looks like the boards forecasts could be overly optimistic on growth of c 2-3% in their statement imo.

[cerrito] 07/12/2015 22:08

Sorry I will not be able to join you for lunch, davidosh, and I look forward to seeing the presentation and how the company deals with the piercing questions.
I have gone through the report – I found the text helpful- and I have the following comments
I did not find the following statement as helpful as it should have been: Quote The Board therefore expects the Group to continue to trade in line with expectations for the rest of the financial year." I am assuming that the full year expectations they refer to was for revenues to be £49.7m and eps(before what adjustments ??) to be 11.6p eps but would have been good if they had stated this. Furthermore the way they worded it implies that we have been given for expectations split out for the 2nd half and I have not seen these nor would I expect to see them for an AIM company.
Looking at the figures what stands out most to me is the very poor net cash generated from operations- the lowest for any 6 month period since I started following the company in 2009. They comment that they have been able to reduce debt- true by £1.5m, which is good, but only because they had disposal receipts of £1.4m.
If I was there I would have wanted to explore this backdrop of poor cash generation to their decision to increase the dividend by 10%- though I do understand that in current market situation if they had not increased the dividend the share price would have fallen more than the surprisingly modest fall today. They really are building up high expectations for the full year results.
I would also have asked about seasonality-not something I can remember coming up before. Their comments on increase in business in China made me look at the receivables- about 85 days and something worth watching.
Hope all goes well

[simon templar qc] 07/12/2015 18:03

I would be querying the bonus scheme if I was to be asking any questions. Its not too difficult doubling EBITDA when the company is seeking to acquire companies however earning per share would have been a better hurdle!

Seems to me earnings per share have been and will be held back by increase in shares and also increase in overheads.

The recent acquisition hasn't been as earning enhancing as I though it would be which I alluded to earlier. Share capital has increased near 20% from a year earlier.

Its a difficult one to assess now particularly with the global slowdown.

Net debt has risen which increases the risk.

[simon templar qc] 07/12/2015 16:38

I uspected full year profits were out of line. The company also indicated slowdown on global economy could affect outlook!

[davidosh] 07/12/2015 10:42

If any of you want to join me for a results presentation lunch tomorrow then just email me at mellomeeting.co.uk

Do you have any questions that you guys want me to ask in the results presentation and filmed interview afterwards ? It will be available to view so very worthwhile.

[simon templar qc] 07/12/2015 10:23

Disappointing in my view. EPS have been held back by increase in shares in issue. Quite muddy figures and patchy sales. Flexipool acquisition expected profits been reduced imo due to increase in staffing levels. I expected better sales than 2% for films business.

[imranawan] 17/11/2015 19:39

David - the level of adjustments they make in their accounts makes me uncomfortable. Although they are transparent about how they arrive at the adjusted profit/EPS figures, the adjustments they make never stop. Do they anticipate a time when they will stop doing this.

Linked to this, the tax they pay is relatively low, which suggests the profits they generate are low.

[davidosh] 17/11/2015 18:28

These are only interim results so plenty still to play for in H2.

Any questions that you guys want me to ask in the results presentation and interview afterwards ?

[simon templar qc] 17/11/2015 17:05

Results out on the 7th and the company has yet to announce a possibility of a new contract win in the meantime..

"Project conversions are progressing satisfactorily and we are hopeful that we will be able to announce a substantial new contract win during H2 for a project where we have prototypes under test and currently performing well."

[davidosh] 17/11/2015 12:42

If any of you would like to come to the lunch presentation I have a couple of places available

[simon templar qc] 20/10/2015 10:18

Downing been picking up stock again in the best chunks they can get hold of.

[davidosh] 02/10/2015 13:54

Plastics Capital has adopted a new Long Term Incentive Plan ("LTIP") to run from FY2015-16 to FY2019-20, succeeding the FY2010-15 scheme which closed at the end of FY2014-15. It applies to approximately 35 directors and senior managers at Group and subsidiary level (the "Participants") with the objective of attracting, motivating and retaining key staff over the long term.



Does anyone have the details for the previous plan and whether they collected/achieved targets set etc ?

[rmillaree] 02/10/2015 13:03

I guess the trick here is to play them at their own game and sell when the shareprice just reaches the Hurdle - effectively that way you have given nothing away whilst you have been a holder.

To me the price used is reasonable and i would much rather have scheme like this than discounted share purchases or similar with a lower hurdle price.

I would agree this scheme does materially reduce the upside potential - but if they now are focused so as to hit their targets thats no bad thing if the result is we have teh chance to sell for 50% increase in shareprice.

Perhaps i may have been a bit less chuffed had i been a long term holder who had bought at 140p but i guess its all about looking forward and not back.

[simon templar qc] 02/10/2015 10:19

I can understand where you are coming from incentive schemes annoyed many a shareholder. One could argue if they wanted the share price up why don't they don't put there hands in their pockets. I think schemes should be put to shareholders.

On balance with such a good story I am inclined to overlook this particular scheme as I do think they will do what they aim to do.

If they do double EBITDA in five years it will be a good performance in a low growth economy.

[simon templar qc] 02/10/2015 07:58

You are missing a good story in global weakness. Its the niche business that will outperform other manufacturing companies and that is why I took a stake,

[shanklin] 02/10/2015 07:18

£1.50 seems rather a low hurdle for management to achieve, in order to start taking up to 10% of the company from shareholders. The share price was £1.40 just over a year ago. All IMHO.

Glad to say no position here currently.

[cerrito] 30/9/2015 17:05

Company has confirmed their understanding of market expectations is as per my 380

[tradermel] 30/9/2015 08:23

I had a better read and I agree, not worth investing in this one at this point in time. An interesting company to store for a future position though.