Interim Results

RNS Number : 3802X

Plastics Capital PLC

06 December 2010

 



For Immediate Release

6 December 2010

Plastics Capital plc

("Plastics Capital", the "Company" or the "Group")

Interim Results for the six months ended 30 September 2010

Plastics Capital plc (AIM: PLA) the niche plastics products manufacturer, today announces its interim results for the six months ended 30 September 2010.

The consolidated financial information has been prepared using International Financial Reporting Standards as adopted by the EU ("IFRS").

Financial highlights

	Six months ended 30 September 2010 £'000	Six months ended 30 September 2009 £'000	% Change
Revenue	16,302	12,883	+26.5%
Gross Profit	6,128	5,057	+21.2%
EBITDA	2,692	2,070	+30.0%
Profit before tax	2,100	1,496	+40.4%
Adjusted EPS*	7.0p	4.8p	+45.8%
Net Bank Debt	14,273	17,641	-19.1%

*Based on 27.4m shares currently in issue

Operational highlights

·    Strong turnover growth driven by new business wins;

·    Volumes almost returned to levels before the economic crisis;

·    Improved new business activity helped by global economic recovery;

·    Good profitability in all Group subsidiaries;

·    Geographic expansion continues;

o international sales represent 62% of total

o direct sales presence established in India and China;

Commenting on these results, Faisal Rahmatallah, Executive Chairman, said:

"These results reflect the significant success of the Group in winning new business over the last 18 months as well as recovery since the economic crisis.  Cash flow has been strong and bank debt has reduced significantly.  We are confident that our continued focus on developing new accounts, new products and on expanding into new territories will lead to excellent organic growth this year and beyond."

Plastics Capital plc Faisal Rahmatallah, Executive Chairman Nick Ball, Finance Director	Tel: [phone]
Cenkos Securities Stephen Keys Liz Bowman	Tel: [phone]
Buchanan Communications   Richard Darby Christian Goodbody	Tel: [phone]

Notes to Editors

Plastics Capital is a consolidator of plastics products manufacturers focused on proprietary products for niche markets.  The Group has four factories in the UK, one in Thailand and sales offices in the USA, Japan, India and China.  Approximately 62 per cent of sales are outside the UK going to over 70 countries worldwide.  Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness.  The Group has approximately 290 employees.

Further information can be found on www.plasticscapital.com

Chairman's Statement

Financial Review

Overall performance is in line with expectations with good profitability in all Group subsidiaries.

Compared to the same period last year, on a statutory accounting basis the Group has:

·     increased revenue by 27% to £16.3 million - 62% of revenue is represented by international sales;

·     increased earnings before interest, tax, depreciation and amortisation (EBITDA), by 30% to £2.7 million;

·     increased profit before tax by 40% to £2.1m; and

·     increased basic earnings per share (EPS) by 45% to 7.0p.

The strong improvement in profitability reflects two key factors: first, excellent volume growth resulting from new business wins and the economic recovery; and second, the absence of exceptional costs that impacted the Group last year in the immediate aftermath of the economic crisis. 

The Group benefited in H1 09/10 from a particularly favourable $/£ exchange rate. On a constant $/£ currency basis ($/£1.64), the underlying profitability improvement is extremely strong.  Underlying profitability excludes amortisation, exceptionals and unrealised foreign exchange gains/losses and applies a 28% charge for corporation tax.  On an underlying basis, the Group has:

·     increased earnings before interest, tax, depreciation and amortisation (EBITDA) by 37% to £2.8m,

·     increased profit before tax by 89% to £1.8m; and

·     increased earnings per share by 85% to 4.6p. 

These improvements highlight the excellent progress made over the last twelve months.

Operating cash flow has continued to be strong.  EBITDA of £2.7m has converted into operating cash flow of £2.3m, equating to 85% cash conversion over the half year.  This high level of cash conversion highlights excellent working capital management over the half year and the relatively low capital intensity of our businesses.

Net bank debt has meanwhile reduced by 19% to £14.3m, benefiting not only from the cash conversion set out above, but also from the weakening of the euro, which has reduced the value of the Group's euro denominated loans.  Now less than 2.7 times annual run-rate EBITDA and reducing, the Group's debt is much less significant than it was 12 months ago.

Volume Growth

New customers and the introduction of new products have contributed to a 21% year-on-year volume increase and a 27% increase in turnover.  The percentage difference between volume and value of sales is primarily accounted for by the "pass-through" of raw material price increases that have been a feature of the market in the last six months.  

The most pleasing and significant driver of the volume growth achieved in H1 10/11 is that 52% of the increase arises from net new business won over the last eighteen months.  During the global downturn, the Group's sales resource was strengthened so contributing to 18 major new account wins over the last 18 months.  Our sales teams have been significantly expanded and restructured through the recession and this is having a major impact on our ability to generate leads and convert prospects into new customers.

In aggregate, volumes are now almost back to the level that applied to the period before the economic crisis impacted with new business activity being helped by the global economic recovery.  For our businesses, the recovery has not been smooth but has displayed quarters of very significant growth followed by quarters where the recovery appears to have stalled.  

Raw Materials

The half year under review has seen upward pressure on raw material prices for both the engineering and commodity grades.  This has been caused by stock shortages rather than issues relating to the oil price.  In general, price increases have been modest and have been contained by effective management and by the fact that raw materials are a relatively small percentage of our cost structure. 

The key exception has been polyethylene, which is used by our specialist film packaging business ("Palagan"), and for which prices increased last year and continued to do so at the beginning of the half year before stabilising towards the end of the half year.  Margins had deteriorated during the last financial year due to the delay between input price increases being received and sales price increases being implemented.  A large part of this margin erosion has now been recovered during H1 10/11 as input prices have stabilised.  There is, however some evidence that further input price pressure will apply from now until the year end, which may lead to continued margin pressure in this business. 

Currency

Compared to the pre-crisis environment, Sterling has remained relatively weak throughout the half year. Because of our export focus, Sterling's weakness is helpful to the Group's trading.  Our key trading exposure is to the US Dollar and our key balance sheet exposure is to the Euro, as approximately 50% of our debt is denominated in Euros.

For the half year under review, the US Dollar achieved an average rate of 1.64 compared to the corresponding prior year, when an average rate of 1.47 prevailed.  As indicated above, this reduced the profit improvement for H1 10/11 compared to H1 09/10 by approximately £0.7m.  As for the Euro, the currency weakened from 1.12 at the end of March 2010 to 1.15 at the end of September 2010, leading to a £0.3m unrealised gain on our Euro denominated debt.

Our hedging policy remains as set out in the past - we seek to ensure that realised gains/losses made in the businesses during the year from foreign exchange movements are broadly negated by the realised gains/losses on forward contracts and foreign currency loans repaid during the year.  This hedging policy enables us to achieve a higher level of predictability of earnings and cash flow, despite currency volatility, at least over a 12-18 month window.

We have hedged forward for the remainder of this financial year and for FY 11/12.  For the remainder of this financial year we are hedged at US/£ 1.64, and for FY 11/12 the rate is better at US$/£ 1.51.  This will, of course, help next year's profits relative to the current year.

Banking

Our net bank debt decreased to £14.3m at the end of H1 10/11.  It has reduced by nearly £6m in the last year and a half, primarily due to strong cash generation.  Since the end of the half year under review, we have concluded a sale and leaseback of the property occupied by Palagan, so realising £1.3m in cash.  Meanwhile, cash flow has continued to be strong.  Working capital management has been very good over the last six months despite the growth in volumes.

Our debt is now reducing to a level at which it will be sensible to consider a refinancing to provide us with terms that are more attractive than those currently in place.  This will be explored in coming months.

Current trading and future prospects

Trading continues to improve, albeit more gradually than the past twelve months and it is pleasing to report that our order books are healthy.  Many of the new customers won in the first half of the year will take months to reach full volume levels.  We therefore expect the volume trends that we have seen over the last twelve months to continue in the near term.

The Thailand factory is progressing well and is now making more than 50% of all bearings and this is increasing.  Our first direct Thai customer has been secured and the factory is now serving the west coast of the USA.  For our matrix and our mandrels businesses, capacity has been expanded or is in the process of expansion.

As we move into the second half of the year, we continue to focus on the following organic growth themes:

·     Customer development - our businesses have many excellent blue chip customer relationships based on the technical advantages of our products, but frequently only in one customer location or operating unit; the sales development opportunities associated with penetrating more of these locations and/or subsidiaries is absolutely outstanding.  Our enlarged and improved sales teams are pursuing this strategy forcefully targeting multinational customers around the world.

·     Territorial expansion - we have established sales offices in India and China with the intention of setting up local subsidiaries; these are markets, where growth rates for the applications into which our products are applied are growing at double digit rates. Our matrix and bearings businesses are leading the way in these areas. Direct sales into other new territories where there is significant potential are also ongoing.

·     New products - all our subsidiaries have opportunities for "near-to-market" product developments that will open up new customers and applications; work is ongoing in all subsidiaries to bring these developments to market as soon as practical.

Acquisition activity has been off the agenda in the last two years, although we can see this is changing.  Some vendors with whom we had discussions before the recession have made contact again.  The common theme is that they are "examining their options" now that the worst of the recession has passed. It will be difficult to execute any acquisitions unless valuations are realistic and funding options improve.  However, it seems likely that funding conditions will gradually improve and valuations will come into line.  We believe, therefore, that there is a good possibility that acquisitions will be back on the agenda in the next year or so and, in the meantime, we look forward to continued excellent progress through organic means.

Faisal Rahmatallah

Executive Chairman

Plastics Capital plc

Consolidated Income Statement

for the six months ended 30 September 2010

		Before foreign exchange & exceptional items	Foreign exchange impact on derivatives and loans	Exceptional items	Total		Before foreign exchange & exceptional items	Foreign exchange impact on derivatives and loans	Exceptional items	Total
		2010	2010	2010	2010		2009	2009	2009	2009
	Note	£'000	£'000	£'000	£'000		£'000	£'000	£'000	£'000
Revenue		16,302	-	-	16,302		12,883	-	-	12,883
Cost of sales		(9,906)	(205)	(63)	(10,174)		(7,780)	515	(561)	(7,826)
Gross profit		6,396	(205)	(63)	6,128		5,103	515	(561)	5,057
Distribution expenses		(782)	-	-	(782)		(716)	-	-	(716)
Administration expenses		(3,612)	-	-	(3,612)		(3,251)	-	-	(3,251)
Operating profit		2,002	(205)	(63)	1,734		1,136	515	(561)	1,090
Financial income	5	165	807	-	972		677	393	-	1,070
Finance expense	5	(606)	-	-	(606)		(664)	-	-	(664)
Net financing (costs) / income		(441)	807	-	366		13	393	-	406
Profit/(Loss) before tax		1,561	602	(63)	2,100		1,149	908	(561)	1,496
Tax	6	(214)	-	-	(214)		(215)	-	-	(215)
Profit/(Loss) for the period		1,347	602	(63)	1,886		934	908	(561)	1,281
Foreign exchange translation differences		(229)	-	-	(229)		(290)	-	-	(290)
Total comprehensive income		1,118	602	(63)	1,657		644	908	(561)	991
Earnings per share
Basic	8				7.0p					4.8p
Diluted	8				7.0p					4.8p

Plastics Capital plc

Consolidated Income Statement (continued)

for the year ended 31 March 2010

							Before foreign exchange & exceptional items	Foreign exchange impact on derivatives and loans	Exceptional items	Total
							2010	2010	2010	2010
	Note						£'000	£'000	£'000	£'000
Revenue							26,688	-	-	26,688
Cost of sales							(16,178)	564	(535)	(16,149)
Gross profit							10,510	564	(535)	10,539
Distribution expenses							(1,313)	-	-	(1,313)
Administration expenses							(6,644)	-	(122)	(6,766)
Operating profit							2,553	564	(657)	2,460
Financial income	5						297	324	-	621
Finance expense	5						(1,289)	-	-	(1,289)
Net financing costs							(992)	324	-	(668)
Profit before tax							1,561	888	(657)	1,792
Tax	6						142	-	-	142
Profit for the year							1,703	888	(657)	1,934
Foreign exchange translation differences							196			196
Total comprehensive income							1,899	888	(657)	2,130
Earnings per share
Basic	8									7.2p
Diluted	8									7.2p

Plastics Capital plc

Consolidated Balance Sheets

		Unaudited As at 30 September 2010	Unaudited As at 30 September 2009	Audited As at 31 March 2010
		£000	£000	£000
Non-current assets
Property, plant and equipment		5,161	5,289	5,210
Investments		33	33	33
Intangible assets		22,868	23,901	23,386
		28,062	29,223	28,629
Current assets
Inventories		2,824	2,825	2,617
Trade and other receivables		6,516	5,630	6,604
Cash and cash equivalents		903	771	606
		10,243	9,226	9,827
Total assets		38,305	38,449	38,456
Current liabilities
Interest-bearing loans and borrowings		2,890	3,562	2,855
Trade and other payables		4,661	3,980	4,404
Corporation tax liability		431	-	95
		7,982	7,542	7,354
Non-current liabilities
Interest-bearing loans and borrowings		12,873	15,376	14,443
Other financial liabilities		111	523	851
Deferred tax liabilities		1,021	1,428	1,151
		14,005	17,327	16,445
Total liabilities		21,987	24,869	23,779
Net assets		16,318	13,580	14,657
Equity attributable to equity holders of the parent
Share capital		274	270	270
Share premium		13,854	13,857	13,854
Reverse acquisition reserve		2,640	2,640	2,640
Translation reserve		384	127	613
Capital redemption reserve		15	69	15
Retained earnings		(849)	(3,383)	(2,735)
Total equity		16,318	13,580	14,657

Plastics Capital plc

Consolidated Cash Flow Statements

		Unaudited Six months ended 30 September 2010	Unaudited Six months ended 30 September 2009	Audited Year ended 31 March 2010
		£000	£000	£000
Cash flows from operating activities before tax
Profit for the period		2,100	1,496	1,792
Adjustments for:
Depreciation, amortisation and impairment		958	1,006	1,945
Financial income		(972)	(1,070)	(621)
Financial expense		606	664	1,289
Equity settled share based payment expenses		-	-	5
Operating profit before changes in working capital and provisions		2,692	2,096	4,410
Decrease / (Increase) in trade and other receivables		88	(219)	(1,193)
(Increase) / Decrease in inventories		(207)	19	227
Increase in trade and other payables		56	311	932
Cash generated from operations		2,629	2,207	4,376
Interest paid		(586)	(655)	(1,184)
Income tax paid		-	-	138
Net cash from operating activities		2,043	1,552	3,330
Cash flows from investing activities
Acquisition of property, plant and equipment		(350)	(431)	(791)
Interest received		-	-	36
Proceeds from disposal of PPE		-	-	1
Net cash from investing activities		(350)	(431)	(754)
Cash flows from financing activities
Repayment of borrowings		(1,396)	(757)	(2,377)
Net cash from financing activities		(1,396)	(757)	(2,377)
Increase in cash and cash equivalents		297	364	199
Cash and cash equivalents at 1 April		606	407	407
Cash and cash equivalents at 30 September and 31 March		903	771	606

Plastics Capital plc

Consolidated statement of changes in equity

	Share capital	Share premium	Translation reserve	Reverse acquisition reserve	Capital redemption reserve	Retained earnings	Total
	£000	£000	£000	£000	£000	£000	£000
Balance at 31 March 2009	270	13,848	417	2,640	69	(4,664)	12,580
Total comprehensive income
Profit or loss	-	-	-	-	-	1,281	1,281
Foreign exchange translation differences	-	-	(290)	-	-	-	(290)
Total comprehensive income	-	-	(290)	-	-	1,281	991
Transactions with owners recorded directly in equity
Issue of new shares	-	9	-	-	-	-	9
Total transactions with owners	-	9	-	-	-	-	9
Balance at 30 September 2009	270	13,857	127	2,640	69	(3,383)	13,580
Total comprehensive income
Profit or loss	-	-	-	-	-	648	648
Foreign exchange translation differences	-	-	486	-	-	-	486
Other movement	-	-	-	-	-	-	-
Total comprehensive income	-	-	486	-	-	648	1,134
Transactions with owners recorded directly in equity
Issue of new shares	-	(3)	-	-	-	-	(3)
Capital redemption reserve	-	-	-	-	(54)	-	(54)
Total transactions with owners	-	(3)	-	-	(54)	-	(57)
Balance at 31 March 2010	270	13,854	613	2,640	15	(2,735)	14,657
Total comprehensive income
Profit or loss	-	-	-	-	-	1,886	1,886
Foreign exchange translation differences	-	-	(229)	-	-	-	(229)
Total comprehensive income	-	-	(229)	-	-	1,886	1,657
Transactions with owners recorded directly in equity
Equity-settled share based payment transactions	-	-	-	-	-	-	-
Issue of new shares	4	-	-	-	-	-	4
Total transactions with owners	4	-	-	-	-	-	4
Balance at 30 September 2010	274	13,854	384	2,640	15	(849)	16,318

 

 

1          Basis of preparation and accounting policies

Basis of preparation

The interim financial information has been prepared on the basis of the recognition and measurement requirements of adopted IFRSs as at 30 September 2010 that are effective (or available for early adoption) as at 31 March 2011.  Based on these adopted IFRSs, the directors have applied the accounting policies, as set out below, which they expect to apply to the annual IFRS financial statements for the year ending 31 March 2011.

However, the adopted IFRSs that will be effective (or available for early adoption) in the annual financial statements for the period ending 31 March 2011 are still subject to change and to additional interpretations and therefore cannot be determined with certainty. Accordingly, the accounting policies for that annual period will be determined finally only when the annual financial statements are prepared for the period ending 31 March 2011.

Accounting policies

The accounting policies applied to the Interim Results for six months ended 30 September 2010 are consistent with those of the Company's annual accounts for the year ended 31 March 2010 with the exception of the items noted below:

·     Amendments to IFRS3 - Business Combinations - issued in May'10 and effective for annual periods beginning on or after 1 July 2010

·     Amendments to IAS 27 - Consolidated and Separate Financial Statements - issued in May 2010 and effective for annual periods beginning on or after 1 July 2010

Going concern

The Financial Reporting Council issued "Going Concern and Liquidity Risk: Guidance for Directors of UK Companies" in October 2009 and the Directors have considered this when preparing the financial statements.  These have been prepared on a going concern basis and the Directors have taken steps to ensure that they believe the going concern basis of preparation remains appropriate.

2          Reconciliation of financial highlights table to the consolidated income statement

		Unaudited Six months to 30 September 2010	Unaudited Six months to 30 September 2009	Change
		£000	£000	%
Revenue		16,302	12,883	26.5%
Gross profit		6,128	5,057	21.2%
Operating profit		1,734	1,090	59.1%
Add back: Depreciation		399	421
Add back: Amortisation and impairment		559	559
EBITDA		2,692	2,070	30.0%
Add back: Exceptional costs		63	561
EBITDA before exceptionals costs		2,755	2,631	4.7%
Profit before tax		2,100	1,496
Add back: Amortisation and impairment		559	559
Add back: Exceptional costs		63	561
Add back: Unrealised foreign exchange (gains)		(231)	(393)
Add back: Unrealised derivative (gains)		(741)	(677)
Profit before tax*		1,750	1,546	13.2%
Taxation		(214)	(215)
Profit after tax*		1,536	1,331	15.4%
Basic adjusted EPS*+		5.6p	4.8p	15.4%
Basic adjusted EPS*+x		4.6p	4.0p	11.3%
Basic EPS		7.0p	4.8p	45.8%
Capital expenditure		350	431	(18.8)%
Net Bank Debt		14,273	17,641	(19.1)%

* excluding amortisation, exceptional costs, unrealised foreign exchange translation and unrealised derivative gains/losses

+ based on 27,492,532 ordinary shares in issue

X applying a 28% tax rate

3          Operating segment information

The following summary describes the operations in each of the Group's reportable segments:

·     Printing and Packaging - includes creasing matrix and films

·     Power Transmission - includes hose mandrel and plastic bearings

	Power transmission	Printing & packaging	Unallocated and reconciling items	Total
	Unaudited Six months to 30 September 2010	Unaudited Six months to 30 September 2010	Unaudited Six months to 30 September 2010	Unaudited Six months to 30 September 2010
	£000	£000	£000	£000
External sales*	7,786	8,516	-	16,302
Profit before tax**	686	692	540	1,918
Depreciation and amortisation	253	219	487	959
Segment assets***	9,148	10,494	16,692	36,334
Segment liabilities****	(2,520)	(4,250)	(15,116)	(21,986)
	_______	_______	_______	______
	Unaudited Six months to 30 September 2009	Unaudited Six months to 30 September 2009	Unaudited Six months to 30 September 2009	Unaudited Six months to 30 September 2009
	£000	£000	£000	£000
External sales*	5,949	6,934	-	12,883
Profit / (loss) before tax	(246)	851	(135)	470
Depreciation and amortisation	249	245	485	979
Segment assets	8,259	6,789	23,401	38,449
Segment liabilities	(3,805)	(3,715)	(17,349)	(24,869)
	_______	_______	_______	______
	Audited 2010	Audited 2010	Audited 2010	Audited 2010
	£000	£000	£000	£000
External sales*	12,363	14,325	-	26,688
Profit / (loss) before tax	(483)	1,095	1,950	2,562
Depreciation and amortisation	522	251	1,172	1,945
Segment assets	9,835	9,986	18,635	38,456
Segment liabilities	(3,542)	(4,248)	(16,009)	(23,779)
	_______	_______	_______	______
* All revenue is attributable to external customers, there are no transactions between operating segments
** Profit before tax for unallocated and reconciling items includes the following material items: management income of £1,475,000,  net interest of £583,000, head office costs of £507,000, unrealised fx gain of £214,000, realised fx loss of £205,000 and rental income of £75,000
*** Segment assets  for unallocated and reconciling items includes the following material items: investments and goodwill of £19,161,000 and an overdraft of £1,177,000
*** Segment liabilities for unallocated and reconciling items includes the following material items: loans of £14,808,000, deferred tax of £1,021,000 and derivatives of £111,000

3          Operating segment information(continued)

Reconciliation of reportable segment revenue

		Unaudited Six months to 30 September 2010 £000	Unaudited Six months to 30 September 2009 £000	Audited 2010 £000
Printing & packaging
Creasing matrix		3,469	2,806	5,754
Specialist films		5,047	4,128	8,571
Power Transmission
Plastics bearings		5,910	4,944	10,217
Hose mandrel		1,876	1,005	2,146
Turnover per consolidated income statement		16,302	12,883	26,668

Reconciliation of reportable segment profit

		Unaudited Six months to 30 September 2010 £000	Unaudited Six months to 30 September 2009 £000	Audited 2010 £000
Total profit for reportable segments		1,918	470	2,562
		1,918	470	2,562
Unallocated amounts:
Amortisation		(559)	(559)	(1,119)
Net foreign exchange gains		-	908	-
Unrealised gains on derivatives		741	677	349
Consolidated profit before income tax		2,100	1,496	1,792

4          Exceptional items

Exceptional costs incurred in the period relate to the write-off of stock on the restructuring / integration of businesses and the restructuring costs associated with moving some production to the Thai factory.

5          Financial income and expenses

		Unaudited Six months to 30 September 2010 £000	Unaudited Six months to 30 September 2009 £000	Audited Year to 31 March 2010 £000
Financial income:
Interest income		-	-	37
Gains on derivatives used to manage interest rate risk		165	677	260
Financial income		165	677	297
Financial expenses:
Bank interest		571	649	1,257
Deferred consideration interest		35	15	32
Financial expenses		606	664	1,289
Financial income and expenses included within foreign exchange:
Net foreign exchange (gain)		(231)	(393)	(236)
Gains on derivatives used to manage foreign exchange risk		(576)	-	(88)
Exceptional items		(807)	(393)	(324)

The net foreign exchange (gains) represent unrealised (gains) arising on the translation of foreign currency loans back into Sterling.

6          Taxation

The taxation charge is calculated by applying the Directors' best estimate of the annual tax rate for the profit/(loss) for the period.

7          Dividends

The Directors do not recommend the payment of an interim dividend (30 September 2009: nil).

8          Earnings per share

	Unaudited Six months to 30 September 2010	Unaudited Six months to 30 September 2009	Audited Year to 31 March 2010
	£000	£000	£000
Numerator
Profit for the period	1,886	1,281	1,934
Denominator
Weighted average number of shares used in basic EPS	26,953,463	26,940,000	26,935,663
Effect of employee share options	50,000	13,463	52,826
Weighted average number of shares used in diluted EPS	27,003,463	26,953,463	26,988,489
Basic earnings per share (total)	7.0p	4.8p	7.2p
Diluted earnings per share (total)	7.0p	4.8p	7.2p

9          Post balance sheet event

On 25 October 2010, Plastics Capital completed on a sale and leaseback agreement with JLW Properties Limited relating to the Group's property at Gilpin Street and Tavistock Street in Dunstable where Palagan, a Group subsidiary which manufactures high strength customised films, is based.  The consideration received in cash by the Group was £1.3 million with the Group entering into a 15 year lease, with five yearly rent reviews.  The commencing rent will be £120,000 per annum.

10        Accounts

Copies of the interim accounts may be obtained from the Company Secretary at the Registered Office of the Company: St Mary's House, 42 Vicarage Crescent, London, SW11 3LD.

 

END

 

 

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