28th Sep 2007 07:01
RPC Group PLC28 September 2007 28TH September 2007 Pre-close Trading Statement RPC expects to deliver a similar pre-exceptional operating profit in the firsthalf of 2007/08 to that in 2006/07. The sales volume picture is encouraging. Our German operations have enjoyed theburgeoning demand in their domestic and export markets. Demand has also held upreasonably well in other mainland European markets, however, there have beensigns of weakening in the UK, particularly in industrial containers and,latterly, in surface coatings. Tassimo sales are up strongly and the prospectsfor this product have been considerably enhanced by the new link-up betweenKraft and Starbucks. We have also made progress on several other projects whichhave considerable potential for the future. Margins have continued to besqueezed by rising input costs, in particular, polymers whose prices haveadvanced relentlessly since January 2007 and now stand at record levels.Packaging and transport costs have also increased materially. Inevitably therewill be a delay as we pass on these higher costs to our customers. Exceptional costs are likely to be higher than in the same period last yearsince the work forces at Thornaby and Hereford are currently being consultedover plans to close these two factories. Finance charges will also be ahead oflast year because of higher borrowings and increases in interest rates on theunhedged portion of our bank debt. RPC will be announcing its interim results for the six months ended 30 September2007 on 30 November 2007. For further information: RPC Group PlcRon Marsh, Chief Executive 01933 410 064Chris Sworn, Finance Director Merlin FinancialPaul Downes 07900 244 888Tom Randell 07775 875 847 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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