While many analysts are uncertain about the future of the UK as a manufacturing centre, Faisal Rahmatallah remains resolutely upbeat. The chairman of AIM listed Plastics Capital (LON:PLA) has spent the last eight years building a UK-based plastics products manufacturing group focused on niche products and attractive export opportunities. In the aftermath of recession the business is back in profit and embarking on a strategy to win over investors with plans for steady growth and an eye on possible acquisitions.

Plastics Capital trades through four operating businesses – BNL Bearings, Bell Plastics, C&T Matrix and Palagan – which collectively manufacture plastic bearings, hose mandrels and creasing matrix – with around 50% of production being shipped abroad to the US, Europe and Asia Pacific. In the year to March, the company reported a swing pack to profitability after being impacted badly the previous year by the global economic downturn. Pre-tax profits came in at £1.8m on sales down 5.3% to £26.7m and debt down by £2.9m to £16.1m as the effects of a streamlining programme took effect. In the aftermath of the recession, Mr Rahmatallah has adopted a three step strategy with a focus on paying down debt, building organic growth and, when the time is right, looking again at acquisitions. He spoke to Stockopedia News about the evolution of the group and its plans for the future.

Faisal, before we start talking about Plastics Capital can you tell us about you and your background?

Well, my early career was spent in manufacturing before moving on to what is now Deloitte, mainly consulting to manufacturing clients. I became a partner there before joining a private equity development capital investment company called Capricorn Ventures International. That specialised in restaurants and financial services and was best known for being the controlling shareholder of Nando’s, the chicken restaurant chain. I helped set up their UK based investment business and then struck out on my own around 2002/2003 with one or two buy-and-build interests and, in particular, plastics. The other one, which is best known, was Broker Network, which was also an AIM listed company that I was chairman of.

So what was going on in the early days of Plastics Capital and what triggered the decision to start consolidation?

A couple of guys, who were manufacturing specialists, that I…

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