Proplastics Limited’s half-year profits jumped 43 percent to $262 896 from the $183 423 recorded in the prior period. An upturn in revenue was the key factor contributing to the rise in profitability. Chairman Mr Greg Sebborn said the revenue grew despite a number of operational challenges. “Revenue for the six month period, at $6,6 million was 13 percent above prior year driven by an 11 percent growth in volumes.
“This was achieved notwithstanding the cumulative effect of the fire that occurred in the factory in October last year and the serious power surge incident that affected the machinery in the factory in the month of June 2015,” he said in a statement accompanying the results. Management believes that the new HDPE line, which was commissioned last year is now making significant contribution to total output.
As a result Proplastics’ sales volumes increased by 11 percent to 1 948 tonnes, which led to an increase in turnover by 13 percent to $6,6 million. Gross profit grew by 17 percent to $1,4 million with the gross profit margin improved to 22 percent from 21 percent last year. The unbundling exercise that took place earlier this year, saw the firms’ overheads rise 11 percent.
EBITDA grew by 26 percent to $794 292. The company’s borrowings remained low with the gearing ratio sitting at 8 percent for the period under review. Closing cash and cash equivalents amounted to $589 461 for the period under review. Going forward, the company is positive about growth in business on the back of projects in the housing and agricultural sectors.
“The outlook remains positive and is underpinned by housing development projects, irrigation and the rehabilitation of dilapidated piping infrastructure for local authorities through non and governmental organisations,” said Mr Sebborn. The board did not declare an interim dividend. — BH24