31st Jan 2011 07:00
THIS ANNOUNCEMENT (AND THE INFORMATION CONTAINED HEREIN) IS NOT FOR FORWARDING, RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.
31st January 2011
RPC Group Plc
("RPC" or the "Group")
Interim Management Statement
Performance in the Period
Sales volumes in the third quarter of the financial year 2010/11 (1 October 2010 - 31 December 2010) were ahead of the same period in the previous year as growth in the personal care and coffee capsule sectors continued as anticipated. Revenue in the corresponding period increased due to the improved volumes and rising price levels, as higher polymer costs were passed through to the customer base.
Operating profit (before restructuring and impairment charges) in the third quarter was ahead of the same period of the financial year 2009/10 as the Group benefited from the increase in activity levels whilst operating from an improved cost base. As anticipated, the adjusted profit before tax* in the third quarter was ahead of the same period of the previous financial year.
The RPC 2010 programme is reaching its conclusion, with the closure of the Goor site in the Netherlands progressing to plan. Performance enhancement initiatives are now well embedded in the ongoing operations.
The financial position remains robust with satisfactory cash flow development in the third quarter and significant head room under the Group's new debt facilities.
Superfos acquisition
On 16 December 2010, the Group announced a conditional agreement to acquire Superfos Industries a/s ("Superfos"), one of the European industry leaders in the manufacture of injection moulded plastic packaging, for €240 million (on a debt and cash free basis). At the requisite EGM on 6 January 2011, shareholders approved both the acquisition of Superfos and the rights issue to part fund the acquisition. On 24 January, RPC announced the completion of the rights issue, which raised approximately £85.3 million (net of expenses). The acquisition is to be funded with a mixture of the proceeds of the rights issue and new debt facilities. The acquisition is expected to complete in February, subject to approval from the German and French competition authorities.
Commenting on current trading, Ron Marsh, RPC's Chief Executive Officer said:
"It is pleasing to note that whilst trading conditions continue to be affected by the uncertain economic environment and rising polymer prices, the Group is able to improve its performance benefiting from an increase in activity levels and a more efficient cost base. With the RPC 2010 programme drawing to a close, the focus is now firmly on growing the overall business".
* adjusted profit before tax is operating profit before restructuring and impairment charges less net interest
For further information:
RPC Group Plc Ron Marsh, Chief Executive Pim Vervaat, Finance Director
| 01933 410 064 |
Kreab Gavin Anderson Robert Speed James Benjamin | 020 7074 1800 |
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Related Shares:
Rpc Group