28th Nov 2018 09:17
LONDON (Alliance News) - RPC Group PLC on Wednesday said its profit decreased in the first half of its current financial year, but revenue rose on acquisitions and improved polymer pricing, as it awaits being acquired itself.
The plastic products design and engineering company said pretax profit declined by 4.5% to GBP154.4 million in the six months to the end of September from GBP161.7 million reported for the first half of financial 2018.
The result was hindered by an increase in net finance costs, which rose to GBP37.4 million from GBP26.0 million, resulting from increased net debt.
Revenue rose by 6.8% to GBP1.89 billion from GBP1.77 billion year-on-year, with strong growth in both packaging and non-packaging segments. At constant exchange rates, revenue grew by 7%.
In addition, RPC highlighted that it benefited from a favourable change in polymer pricing as well as the impact of acquisitions, both made in the period and a full-year effect of those in the prior year.
During the half-year, the company bought German packaging firm Nordfolien, manufacturer Spec Group and plastic waste recycler PLASgran.
In the Packaging division, revenue improved by 6.7% to GBP1.62 billion, driven by recent contract wins in the US.
In the Non-Packaging unit, revenue climbed by 7.9% year-on-year to GBP272 million, driven by higher demand for Dutch-owned storage solutions company ESE World's temporary waste solutions.
RPC noted that insulated plastic containers producer Saelast, serving the fish and agricultural industries, also experienced a "good period" resulting from increased European fish quotas.
RPC raised its interim dividend by 3.8% to 8.1 pence a share from 7.8p paid the year before.
"I am pleased with the trading performance over the last six months," said Chief Executive Pim Vervaat.
"I am excited by the many opportunities to further develop both organically and through acquisitions," added Vervaat.
RPC itself is in talks to be taken over by private equity firms Apollo Global Management and Bain Capital. It did not provide any additional details in its interim results.
The original deadline for Apollo and Bain to either announce a firm intention to make an offer or step away from a deal under UK takeover rules was October 8. Early in October, this was extended until November 5 and then further extended to Monday next week.
RPC shares were trading flat on Wednesday at 751.60p each.
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