Picture: ISTOCK
Picture: ISTOCK

Master Plastics, the AltX-listed group unbundled from Astrapak in May 2017, is on track to match projected earnings before interest, tax, depreciation and amortisation (ebitda) in the year to February 2018, despite poor trading conditions.

In its maiden interim results to August 2017 released on Tuesday, it reported ebitda of R27.8m and headline earnings per share of 12.2c for the six-month period. This was compared to its prelisting statement forecast of ebitda of R 54.7m and headline earnings per share of 23.68c for the full 12 months.

"It was an important set of results for the group … as it would signal to the market our ability to perform to the forecast for the financial year ending February 28 2018, as was contained in our pre-listing statement," group CEO Manley Diedloff said.

"The reported result for the first six months illustrates the business is currently performing marginally ahead of where it would need to be to achieve its full-year forecast," he said.

"We are satisfied with what we have delivered to date against the backdrop of a weak economy and we hope the market will be satisfied and confident about the ability of the business to deliver," Diedloff said.

At the end of the reporting period the net asset value was 139.4c. The group remained net cash positive and was ungeared as at the end of August 2017.

"Our balance sheet remains strong, we generate positive cash flows and we are managing the application of our funds well," Diedloff said.

"But we do expect this ungeared position to change over time as we finalise investment opportunities in support of organic growth being led by the existing customer base."

allixm@bdfm.co.za

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