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Prima Plastics


Prima Plastics is in the business of manufacturing Moulded Furniture and Aluminium Composite Panels.  It supplies usually to retail outlets.  It also owns a profitable joint venture in Cameroon.

The company has reported reasonably consistent growth in revenues and operating profits over the last five years.  It reported almost 6cr in operating profits on revenues of almost 60cr in the last financial year while employing modest net debt of about 3cr.

The business is exposed to high risk of poor performance in recessionary conditions.  It is also exposed to crude oil and aluminium price spikes, polypropylene (plastic) supplies - mainly dependent on Middle East capacity, heavy competition incl from China, price competition in low-value products, foreign exchange risks on imports as well as exports, etc.

Management initiated dividends in FY’10 and continued it in FY’11.  Its continuance would appear to depend on the impact of business risks mentioned above.
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