Pre-Close Trading Statement

30 September 2011

RPC Group Plc

Pre-close Trading Statement

RPC Group Plc, Europe's leading rigid plastic packaging supplier, today issues a pre-close trading statement ahead of its first half year results due to be published on 30 November.

Performance first half year 2011/12

Revenue in the first half of the financial year is projected to be significantly higher compared with the corresponding period last year due to the inclusion of the Superfos business as well as higher like-for-like turnover. The sales mix has substantially improved as a result of continuing growth in higher added value products such as pharmaceutical, long shelf life, personal care and coffee capsules. Investments to facilitate further growth in these areas are progressing well.

Operating profit (before exceptional items) in the first half year will be ahead of the corresponding period last year due to the inclusion of the Superfos results and the associated synergies as well as an improving like-for-like profitability. This is driven by the better sales mix, efficient cost base and a less adverse impact from the time lag in passing through polymer prices to customers as polymer prices show a declining trend since the end of May. The adjusted profit after tax* is expected to be ahead of management expectations.

The Group continues to have a robust financial position with cash flow performance in the first half year anticipated to be again satisfactory.

Superfos integration

The integration of Superfos continues to progress very well with the business operating as a separate cluster within the overall Group structure whilst the purchasing function has been centralised. Changes in the head office cost structure have been implemented and key management retained. The realisation of cost and revenue synergies is running ahead of plan with the full year synergies for 2011/12 now estimated to be at least £7m compared with the previous estimate of £5m. As outlined previously, steady state synergies of between £15m and £25m are expected to be realised in financial year 2013/14.

Commenting on the first half year's performance, Ron Marsh, RPC's Chief Executive Officer said:

"The improvement in the first half year performance is encouraging and ahead of our expectations, despite the uncertainties surrounding the general economic environment. Based on our innovation capabilities, strong market positions and lean cost and capital base, I believe the Group is well positioned to continue to deliver the performance necessary to achieve its stated aim of 20% ROCE by March 2014."

* adjusted profit before tax is operating profit before restructuring and impairment charges less net interest and associated tax charges

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