30th Sep 2010 07:00
30 September 2010
RPC Group Plc
Pre-close Trading Statement
RPC Group Plc, Europe's leading rigid plastic packaging supplier, today issues its pre-close trading statement ahead of the announcement of the first half year results due to be published on 30 November.
Performance first half year 2010/11
Revenue in the first half of the financial year is expected to be higher compared with the corresponding period last year as overall sales volumes improved and selling prices increased reflecting the pass-through of higher polymer price levels. Volumes in the personal care, pharmaceutical and coffee capsule sectors have been growing substantially due to a combination of cyclical recovery and organic growth. Activity levels in other sectors have generally been more subdued.
Operating profit (before restructuring and impairment charges) in the first half year is anticipated to be ahead of the corresponding period last year due to a more efficient cost base with the improvement in volumes offsetting the squeeze in gross margins which occurred as a consequence of polymer prices increasing to record levels. By the end of the half year, most of the polymer price increases have however been passed through to the customer base. The adjusted profit before tax* is expected to be in line with management expectations.
The financial position remains robust and a satisfactory cash flow performance is anticipated for the first half year.
RPC 2010
The RPC 2010 programme has progressed well with the plant closure work stream expected to be completed by the end of the financial year. The performance enhancement work stream of RPC 2010 is being embedded in an ongoing continuous improvement programme.
Commenting on the first half year's performance, Ron Marsh, RPC's Chief Executive Officer said:
"It is very satisfying to see that the operating profit level achieved by the Group in the first half year is anticipated to be in line with our expectations thereby demonstrating RPC's resilience in a period where polymer prices increased to a record high. The improvement in activity levels in certain sectors is equally encouraging with the Group entering the next phase of delivering sustainable and profitable growth in what continues to be a challenging economic environment."
* adjusted profit before tax is operating profit before restructuring and impairment charges less net interest
For further information:
RPC Group Plc 01933410064
Ron Marsh, Chief Executive
Pim Vervaat, Finance Director
Kreab Gavin Anderson 02070741800
Robert Speed
James Benjamin
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