Interim Management Statement

RPC Group

29 January 2015

Interim Management Statement

RPC Group, the leading international rigid plastic supplier to packaging and non-packaging markets, today issues its interim management statement for the period from 1 October 2014.

Trading performance

Revenues for the Group ("continuing operations") in the third quarter of the financial year 2014/15 ("the period") increased compared to the same period last year due to the contribution from acquisitions and slightly higher underlying activity levels.

The Group's adjusted operating profit in the period was in line with management expectations and significantly ahead of prior year due to the organic growth, benefits from the Fitter for the Future programme and the contribution from acquisitions. In the period there was a benefit from the time lag in passing through declining polymer prices to the customer base which was to some extent offset by the foreign exchange translation headwinds caused by the strengthening of the £ versus the €. Both trends are anticipated to continue in the final quarter of the financial year.

The Group's financial position remains robust with satisfactory cash flow development in the third quarter and significant headroom under the Group's debt facilities.

Vision 2020

Good progress continues to be made in implementing the Vision 2020 focused growth strategy by growing organically and through acquisitions. The overall performance of M&H Plastics, Helioplast and Ace has been encouraging, and these acquisitions have enhanced the Group's management and technical capabilities whilst extending its geographical reach. The integration has now been largely completed.

The Fitter for the Future programme has been successful and is nearing completion. Preparation for the integration of Promens is progressing well with completion of the acquisition anticipated by end of March at the latest as anti-trust clearances have already been received from the German, Polish and Russian authorities.

Pim Vervaat, RPC's Chief Executive, said:

"Despite the difficult trading environment in Europe, I am encouraged by the Group's recent trading performance and the contributions from the recent acquisitions. Looking forward, the acquisition of the Promens business will be a further significant step in realising the focused growth strategy outlined in Vision 2020 whilst we continue to explore additional growth opportunities."