4th Jun 2014 08:17
LONDON (Alliance News) - RPC Group PLC Wednesday reported a 22% increase in its full-year pretax profit, as revenue growth more than offset an increase in operating costs, boosted by its acquisitions of M&H Plastics and Helioplast.
In a statement, the European rigid-plastic packaging supplier said it made a GBP59.0 million pretax profit in the year ended March 31, compared with GBP48.2 million a year earlier. Revenue grew to GBP1.05 billion, from GBP982.3 million, while operating costs increased to GBP973.7 million, from GBP920.3 million, resulting in a stronger operating profit.
RPC, which is undertaking a move to grow profits by making acquisitions in the European market and establishing a meaningful presence outside of the area, said it made progress on delivering that strategy, known as Vision 2020.
"The group delivered a strong performance in an economic environment which remained subdued for most of the year, before seeing a slight improvement in the second half. I am very pleased with the progress we achieved in the implementation of our Vision 2020 strategy, providing the group with further platforms for profitable growth in the USA, Asia and South East Europe. The [new] financial year has started in line with management's expectations," Chief Executive Pim Vervaat said in a statement.
Sales in the year were boosted by M&H Plastics and Helioplast, both of which were acquired in December 2013, together contributing GBP24.5 million of sales and GBP3.5 million of operating profit. Excluding acquisitions, sales increased by 4%, due to improved sales mix and the strengthening of the euro. Results were also boosted by changes to depreciation estimates applied to primary production line machinery, which was increased from 10 to 12 years after a review the lifespan of the assets, reducing depreciation charges by GBP3.7 million.
Since the end of its last financial year, RPC has acquired China-based and Hong Kong-headquartered Ace Corp Holdings Ltd in a deal valued at up to USD430.0 million in cash and shares, as well as selling its disposables trading business, Tedeco-Gizeh GmbH, at Offenburg in Germany, to HOSTI International GmbH for EUR3.0 million.
RPC increased its full-year dividend to 15.5 pence, from 14.9 pence.
Shares in the FTSE 250 constituent were up 2.6% at 638.50 pence early Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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