25th Jul 2007 10:25
RPC Group PLC25 July 2007 RPC Group Plc Interim Management Statement In line with UK Listing Authority's Disclosure and Transparency Rules, RPC GroupPlc releases its first Interim Management Statement, in respect of the period 1April 2007 to 30 June 2007. 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 a satisfactory start to the year despite thechallenging conditions brought about by the continued escalation of polymerprices. Revenue was up 10% (4% on a like-for-like basis) compared with the correspondingperiod in the previous financial year, with growth being achieved in our UKInjection Moulding, Bramlage-Wiko, Bebo and Cobelplast clusters. The revenuegrowth has resulted from both the acquisitions made during the last financialyear and improved demand for a number of products including paint cans, fruitbowls, Magic Star dispensers, cream jars and deosticks. The continued increases in polymer prices which have risen by 6% to 9% since thestart of the financial year together with increases in other variable costs suchas transport and outer packaging have maintained the pressure on margins, andlargely eroded the positive impact of the increased sales. On 3 July 2007 we announced that we had entered into consultation with theworkforce at our site at Thornaby, UK, with a view to consolidating themanufacturing operations of our beaute cluster at our Mainland Europe sites,with the disposal of some of the equipment at Thornaby and the closure of thatsite. This announcement resulted from the strategic review of this cluster whichwas referred to in the latest annual report. During the period we acquired the plastic manufacturing operations of DM Plasts.r.o. in Velky Meder near Bratislava in Slovakia. The acquired business, whichwas commented upon in the annual report, enhances the geographic reach of ourBramlage-Wiko cluster. Board Changes We are pleased to announce the appointment of Pim Vervaat as the Group's newFinance Director. Pim (42) is currently Divisional Finance Director of the £3billion turnover Distribution and Buildings System Division within Corus. He isa Dutch national who has worked in the UK for Corus and its predecessor,Hoogovens, for seven years. Prior to that he was FD of Lips Group, a successfulprivate equity owned Dutch manufacturing concern. He started his career atHoogovens where he held various positions working in the Netherlands, Belgiumand Germany. His appointment will take effect from 1 November 2007. With effect from the same date, Chris Sworn will relinquish his responsibilitiesas Finance Director, but will remain on the Board with responsibility for allour Blow Moulding activities comprising 12 sites in Belgium, England, France,Germany, Holland, Spain and Wales. Outlook for the Current Financial Year We anticipated that polymer prices and other costs would be escalating early inthis financial year. So our assessment of the prospects for the Group remainsunchanged and despite this challenging start to the year the Board still expectsto make progress for the year as a whole. Enquiries Ron Marsh 01933 410064 Chris Sworn 01933 410064 25 July 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Rpc Group