LONDON (ShareCast) - Plastics Capital on Tuesday posted a trading update for its third quarter, showing results in line with market expectations.
The niche plastics product group said trading conditions were stable since announcing interim results and little change was expected in the near term.
"Demand in Europe remains depressed, but elsewhere sales are growing in-line with management expectations," the company stated.
Plastics Capital secured new businesses including LG Corporation (KSE: 003550.KS - news) in South Korea for paper pathway bearings, which has a potential total sales of £0.25m per annum when it commences production later in the year.
The group also won a contract to supply bearings for camera lenses and established a manufacturing facility in Shanghi where it will primarily make machined plastic ball bearings to meet demand for the product in China.
"Many European customers, whose demand is driven by the investment cycle, continue to be affected negatively by the weak economic conditions - elsewhere demand has been improving," Executive Chairman, Faisal Rahmatallah, said.
"New business activity is going well and we are investing for growth in (full year 2013/14) and beyond. Performance should be broadly in line with expectations over the final quarter and looking into the next financial year I anticipate a year of significant progress."
Shares increased 9.66% to 79.50p at 14:58 Tuesday.