Follow us

Plastics Capital (PLA) Interview December 2015

Plastics Capital (PLA) Interview December 2015

10 December 2015

Plastics Capital H1 progress: Executive Chairman, Faisal Rahmatallah speaks to David Stredder, Mello founder, following interim results.

Summary of what’s covered:

Business is going in the right direction, sales up because of the acquisition, although growth disguised by negative impact of fx and polymer prices. Bearings business is starting to grow.

Flexipol has driven revenues. Films division is starting to benefit from cost savings and cross selling synergies to come in next FY. Bearings business has £4.3m business annually coming through in next 3-4 years.

Drags on growth: Emerging markets (matrix business) and oil, gas and mining (mandrels business).

Central costs have gone up to prepare for future growth: with Legal Manager , Divisional Director (Films).

Further growth through acquisitions is being considered. David questioned about debt and funding for these: 1.5-2x EBITDA is the ratio of debt that would be considered, although could go up to 2.5x immediately following an acquisition.

Other items discussed:

Dividend policy going forward.

Why the non-execs were included in the LTIP.

The adjustments in the accounts – are these a permanent feature?

Investment in the distributors of their creasing matrix – rationale?

Listen on the go

About PIWORLD

PIWORLD provides investors with the latest news and insight about listed companies and their management through either live or recorded investor presentations, management interviews, Capital Market Days and corporate overviews, together with interviews with leading fund managers or esteemed private investors in the small cap world.

Our Services

PIWORLD delivers high quality audio and video content to present anything from full-year & interim results to Capital Markets Days and corporate overviews. We bridge the gap between listed companies and the private investor community, who drive the share price and provide liquidity, providing a time and cost effective medium to reach this diverse and important audience.