1st Feb 2008 07:00
RPC Group PLC01 February 2008 1 February 2008 RPC Group Plc Interim Management Statement In accordance with UK Listing Authority's Disclosure and Transparency Rules, RPCGroup Plc releases its second Interim Management Statement, in respect of theperiod between 1 October 2007 and the date of publication of the statement. Business Operations The Group is the leading supplier of rigid plastic packaging in Europe withmanufacturing operations in 12 countries of the European Union and one in theUSA. Our product range is extensive, with the Group supplying, inter alia, thefollowing markets: • DIY• personal care• cosmetics• pharmaceutical• healthcare• food and drinks• lubricants• agrichemicals The Group has wide experience of injection moulding, blow moulding, andthermoforming production techniques; all three production processes are usedextensively within the business and it is along these technological lines thatwe structure our business within what are termed 'clusters', of which there areseven. Performance in the Period Overall our business has made progress in the period between 1 October and 31December 2007 despite the continuing challenging conditions brought about by thefurther escalation of polymer prices. Revenue in the period 1 October - 31December was up 4% compared with the corresponding period in the previousfinancial year, with growth being achieved in our Blow Moulding, Bramlage-Wiko,Bebo, Cobelplast and Tedeco-Gizeh clusters. The revenue growth has resulted fromboth the acquisitions made during the last financial year and improved demandfor a number of products including fruit bowls, Magic Star dispensers, creamjars and deosticks. The continued increases in polymer prices, which have risen by 9% since thestart of the financial year to 31 December, together with increases in othervariable costs such as transport and outer packaging have maintained thepressure on margins and largely eroded the positive impact of the increasedsales. Our financial position at 31 December remains strong. In order to address the cost base of the UK injection moulding businesses theclosure of our plants at Thornaby and Hereford has been previously announced.The closure process at both sites is progressing according to plan as is therestructuring of our thermoforming business in Poland. During the period we acquired the plastic manufacturing operations of Raytec BVin the Netherlands and MOB in France. Raytec will allow further expansion intothe DIY, Household and Stationary markets; going forward, this business willtrade as RPC Bramlage DHS BV and form part of the Bramlage-Wiko cluster. MOB, based at Moirans, was a leader in the French blow moulded stock containerindustry until July 2007 when it was forced into administration by its parent,Smoby, which was in financial difficulties. MOB complements the product range ofour nearby plant in Montpont and will form part of the Blow Moulding cluster. Enquiries: RPC Group PlcRon Marsh 01933 410064Pim Vervaat 01933 410064 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Rpc Group