Pre-close Trading Statement

28 September 2012

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 29 November.

Trading performance

Activity levels are generally anticipated to be on a similar level to last year. Growth in higher added value products such as coffee capsules continued enhancing the overall sales mix, although some weaker market conditions such as industrial sales into the Spanish market were also experienced. Significant investment in the Group's pharmaceutical operations is taking place enabling future higher added value growth. Revenue in the first half of the financial year as reported in sterling is projected to be lower than the corresponding period last year mainly as a consequence of the strengthening of the sterling versus the euro as a significant part of the Group's turnover is recorded in euro.

Operating profit (before exceptional items) in the first half year is anticipated to be ahead of the corresponding period last year and in line with management expectations despite the general economic weakness and the strengthening of the sterling versus the euro. This improvement is driven by growth in higher added value products, the realisation of further Superfos synergies, cost efficiency measures and a less adverse impact from the time lag in passing through polymer prices to customers. Polymer prices rose to record levels in April before reducing by more than 20% by the end of July. Subsequently they have however increased again to near record levels by the end of September.

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

Other developments

The integration of the Superfos business has been completed and the achievement of the first phase synergies were finalised through the closure of the Runcorn facility in June. The Group is now focusing on realising the medium and longer term synergies which is combined with other cost efficiency measures in the "Fit for the Future" programme aiming to further enhance operational efficiency and achieve commercial benefits.

The previously announced withdrawal from the loss making market segments of automotive components in Neutrabling (Germany) and vending cups in mainland Europe have also been completed. The automotive components business, which achieved sales of circa €7m in the year ending March 2012, has been sold to APC GmbH. The value of the gross assets sold was £2.3m.

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

"The improvement in the first half year is encouraging as it is achieved in a generally weak macro-economic environment. I believe RPC is well positioned to continue to deliver the performance necessary to achieve its stated aim of a 20% ROCE by March 2014."

For further information:

RPC Group Plc 01933410064

Ron Marsh, Chief Executive

Pim Vervaat, Finance Director

Kreaab Gavin Anderson 02070741800

Robert Speed

Anthony Hughes