Plastics Capital, which owns a portfolio of small companies making niche plastic products has seen its share price plunge in morning trading after revealing falling profits and revenues and the departure of a founder shareholder from the board.
The firm has four main subsidiaries: Bell Plastics; BNL; C&T Matrix; and Palagan.
In the 12 months to the end of March, revenues fell 4% to £32m while profit before tax dropped 3% on the prior year to £3.765m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Unfortunately for the firm, which employs over 300 people, the stock price had fallen 17% by 10:42, indicating the market was troubled by something more than a relatively mild drop in revenue.
Plastics Capital argues it has done well to keep the turnover reduction as low as 4%, with its factory in Thailand hit by floods, and the Japanese tsunami reducing demand in a key market.
The Executive Chairman, Faisal Rahmatallah, said the board expected to "make good progress over the next year."
In a separate and very brief announcement, the firm said non-executive director Arun Nagwaney, a founder shareholder of Plastics Capital, had left the board "owing to other business commitments".
BS
-
How to find the best luxury hotel dealsKnowing how to find the best luxury hotel deals can help holidaymakers enjoy high-end experiences without the sky-high costs. We reveal how to bag the best value for less.
-
Frozen thresholds could push ‘tax freedom day’ to latest date this centuryTax freedom day is the point in the year you stop earning for the taxman and start earning for yourself. A rising tax burden could push it to 12 June this year – the latest date since 1982.
