Nuplex is extremely likely to post its biggest ever ebitda when it unveils its interim results tomorrow, but its reliance on raw materials could take the bounce out of its recovery.

The resin manufacturer is still recovering from the horrific position it was in this time last year, when a catastrophic drop in demand saw its share price shrink to a fraction of its 2008 highs.

That demand has returned somewhat in the wake of the company’s capital raising last year and while Nuplex has consistently pointed out that demand has still not reached the pre-recession peaks, the share price (NZX:NPX) has steadily climbed in recent months.

It rose over the $3.40 mark this week, the highest level in a year.

The confidence in the stock has been built on increasingly strong forecasts from the manufacturer, with its latest guidance last month suggesting that its first half ebitda would be “well above” the previous record of $60.6 million.

Analysts are picking a result of about $67 million with a possible interim dividend of 8.5 cents.

With the company consistently keeping the market updated on its recovering fortunes, there are few surprises expected in tomorrow’s result, although an update on the outlook for the second half will be closely watched.

First NZ Capital analyst Jason Familton said the effect of raw material price increases and their effect on squeezed margins will also be something the market will be keeping an eye on.