I’ve just taken a quick look at UK industrial manufacturer, Plastics Capital (LON:PLA). I like the firm. It is focusing on high-margin products. It is based in the UK and exports to China. It looks like it is able to pass on raw material costs, albeit after a little lag. It also communicates well – which I appreciate.
But I don’t like the price. At 78p, it’s trading at about 46% premium to book. Not only that, but the book contains a lot of intangibles. The firm is also 60% geared: too much for me. No dividend history either. So not a firm I’ll be researching further.