28th Nov 2013 13:35
LONDON (Alliance News) - Rigid plastic packaging supplier RPC Group PLC Thursday reported an uptick in revenue and profits before tax from continuing operations for the first half of the year, but a sharp fall in profits after tax when including the results of its extruded-sheet manufacturing business Cobelplast, which RPC is try to sell.
RPC said that trading in the second half of the year has started well, and going forward, it is well placed to benefit from an economic recovery in Europe.
Pretax profit rose to GBP30.1 million for the six months ended September 30, compared with GBP29.2 million a year earlier. However, the group said its net profit more than halved to GBP6.0 million, down from GBP13.5 million a year earlier, as it included a GBP16.1 million loss at Cobelplast, widened from GBP7.6 million a year earlier.
The group said that it incurred an additional GBP9.5 million in restructuring costs, impairment losses and other exceptional items in the first half of the year, on top of the GBP11.1 million it booked last year.
RPC said that revenue rose 8.5% in the first half of the year to GBP525 million, up from GBP484 million a year earlier, largely down to a stronger euro, as around 66% of its turnover is generated from businesses in the eurozone. Sales in its largest business division, injection moulding, rose 13% to GBP341.1 million.
The group said that net cash generated from operating activities stood at GBP51.2 million at the end of the period.
RPC announced earlier this month an new investment strategy aimed at delivering profitable growth going forward.
"We continue to invest to capture this growth and in the second half of the year this investment will increase due to several major contract wins and the planned expansion in the US," said Chief Executive Officer Pim Vervaat in a statement.
The board increased its interim dividend to 4.5 pence per share, compared to 4.3 pence last year.
RPC Group shares were flat at 500.00 pence per share Thursday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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