PLASTIC pipes manufacturer Proplastics Limited has set aside US$2,4 million in capital expenditure for 2026, targeting capacity expansion and improved production efficiencies as it positions for growth.
The planned investment follows a solid performance in the financial year ended December 31, 2025, when profit after tax rose nearly 16% to US$1,38 million.
Turnover increased 11% to US$22,8 million, supported by a 9% rise in sales volumes. Tight cost controls also boosted margins, with gross profit climbing 23% to US$7,49 million. Profit before tax advanced 21% to US$1,98 million, underpinning the improved bottom line.
The group had previously invested US$3 million in automation technology to enhance operational efficiency and streamline production processes.
“Capital expenditure for the year ended December 31, 2025 amounted to US$809 000,” Proplastics said in its annual results for the review period.
“The budgeted capital expenditure for the year ending December 31, 2026 is US$2,406 million. The expenditure will be financed from internal resources and existing facilities.”
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Operating cash flows strengthened significantly, rising 256,4% to US$3,27 million, driven by prudent management of gearing and finance costs. The group closed the year with US$366 904 in cash and cash equivalents, slightly up from US$356 966 in 2024.
Proplastics also secured a long-term loan backed by a Notarial General Covering Bond over movable assets, including cession of book debts, and a First Ranking Deed of Hypothecation over immovable assets. The facility is repayable over three years at an annual interest rate of 12%.
Freehold land and buildings with a net carrying amount of US$7,01 million were pledged as security under the hypothecation arrangement.
“The board has performed a thorough assessment and confirms that the group has adequate resources to continue in business and in the foreseeable future. This is supported by both current performance and financial forecasts, as well as a regular upgrade of property plant and equipment,” Proplastics said.
“Consideration was also made on the following critical issues: the group’s current exposure to foreign liabilities is manageable; the group can service its current loans; the group has sufficient capacity to increase borrowings, if need be, to finance working capital; demand for the group’s products remains firm.”
Directors said they were satisfied the group remained in a sound financial position with adequate resources to sustain operations.
“The group anticipates broad-based growth across all business segments, underpinned by a more supportive operating environment and rising investment in national infrastructure,” Proplastics chairman Gregory Sebborn said.
“The group’s products continue to serve as critical inputs across the sectors it has traditionally supported. However, the local market has rapidly evolved over the last few years, with significant purchasing power now being decentralised and product demand being more segmented.”
He added that strategic positioning and investment in capacity would support growth.
“Further opportunities exist for exports into regional markets, but competitiveness remains a challenge due to the 30% foreign currency surrender requirement,” Sebborn said, referring to funds retained by the central from exporters.
“However, the group will continue to pursue export opportunities on a select basis. The market-driven momentum experienced in the latter part of the year is expected to carry through into the new year, which will provide further opportunities for growth in operations.”