RPC
Revenue well ahead of last year / Higher level of added-value products / Good cash flow / Superfos integration nearly completed
Europe’s leading supplier of rigid plastic packaging RPC Group (Higham Ferrers, Rushden / UK; www.rpc-group.com) presented a very positive picture of performance in its recent pre-close trading statement for the financial year to 31 March 2012. Turnover is expected to be well ahead of last year due to the inclusion of the Superfos business, acquired in February 2011 – see Plasteurope.com of 23.02.2011 – and higher like-for-like revenues. Volumes have been similar to the previous year, despite the continuing trend towards light-weighting, but the sales mix improved significantly towards higher added-value products, such as coffee capsules, long shelf-life packaging and personal care and pharmaceutical products.
Margins were impacted in Q4 last year as polymer prices rose by up to 20%, increases that RPC only plans to pass on in the coming quarters. Operating profit for the year, excluding exceptional items, will be well ahead of the previous 12 months, RPC said, reflecting the improved revenue position as well as expectations based on the group's half-year performance. This will be in line with management expectations that will surely have been based on the half-year performance that saw overall revenue increase by over 50% and operating profits doubled – see Plasteurope.com of 06.12.2011. RPC says there was good cash flow development in the fourth quarter and the financial position remains robust, with significant headroom under the group’s debt facilities.
Integration of the Superfos business is nearing an end with the closure of the site in Runcorn / UK and the transfer to other RPC sites expected to be completed by the end of June 2012. The previously announced withdrawal from the loss-making segments of automotive components in Germany and vending cups in mainland Europe is said to be progressing well. Exceptional costs related to these actions are expected to be of the order of GBP 15m (EUR 18m), which includes significant impairment costs and asset write-downs. The proceeds from assets sales, however, plus the release of working capital, are expected to be more than sufficient, says RPC, to fund any redundancy costs.
Commenting on the group’s performance, chief executive Ron Marsh said the fourth quarter had been encouraging, despite escalating polymer costs, and had been boosted by the continuing growth in added-value products. He added: “With the Superfos integration approaching completion, I am confident that RPC will deliver further progress towards achieving a 20% ROCE despite current macro-economic uncertainties.”
The preliminary results are due to be published on 12 June.
Margins were impacted in Q4 last year as polymer prices rose by up to 20%, increases that RPC only plans to pass on in the coming quarters. Operating profit for the year, excluding exceptional items, will be well ahead of the previous 12 months, RPC said, reflecting the improved revenue position as well as expectations based on the group's half-year performance. This will be in line with management expectations that will surely have been based on the half-year performance that saw overall revenue increase by over 50% and operating profits doubled – see Plasteurope.com of 06.12.2011. RPC says there was good cash flow development in the fourth quarter and the financial position remains robust, with significant headroom under the group’s debt facilities.
Integration of the Superfos business is nearing an end with the closure of the site in Runcorn / UK and the transfer to other RPC sites expected to be completed by the end of June 2012. The previously announced withdrawal from the loss-making segments of automotive components in Germany and vending cups in mainland Europe is said to be progressing well. Exceptional costs related to these actions are expected to be of the order of GBP 15m (EUR 18m), which includes significant impairment costs and asset write-downs. The proceeds from assets sales, however, plus the release of working capital, are expected to be more than sufficient, says RPC, to fund any redundancy costs.
Commenting on the group’s performance, chief executive Ron Marsh said the fourth quarter had been encouraging, despite escalating polymer costs, and had been boosted by the continuing growth in added-value products. He added: “With the Superfos integration approaching completion, I am confident that RPC will deliver further progress towards achieving a 20% ROCE despite current macro-economic uncertainties.”
The preliminary results are due to be published on 12 June.
15.05.2012 Plasteurope.com [222327-0]
Published on 15.05.2012