23rd Sep 2009 07:00
23 September 2009
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 27 November.
Performance first half year 2009/10
As previously anticipated, revenue in the first half of the financial year 2009/10 is expected to be down compared to the corresponding period last year as polymer price reductions have been passed through to customers and overall sales volumes reduced. Whilst the general economic climate continues to be challenging, it does appear that the customer de-stocking effects have come to an end in the majority of the sectors that RPC supplies.
Operating profit (before restructuring and impairment charges) in the first half year is anticipated to be ahead of the corresponding period last year as the volume shortfall is more than compensated by a restoration of margins and lower costs with manning levels substantially reduced. Interest charges are projected to be significantly lower due to lower interest rates and average net debt. Consequently the adjusted profit before tax* will be ahead of last year.
The financial position remains robust and a satisfactory cash performance is anticipated for the first half year.
RPC 2010
The RPC 2010 programme is progressing well. As previously announced, plant closures are ahead of the original timetable and further cost savings in procurement have been identified. As part of the programme the cost base is continuously reviewed in order to establish the appropriate cost structure within the time frame of RPC 2010.
Commenting on current trading, Ron Marsh, RPC's Chief Executive Officer said:
"The current economic environment is difficult and has impacted volumes although the customer de-stocking effect appears to have run its course. Measures have been taken to address the cost base which together with a much needed restoration of margins has so far more than offset the volume impact. I believe that RPC's prospects are good with overall industry dynamics improving and our self-help plan RPC 2010 delivering as promised".
* adjusted profit before tax is operating profit before restructuring and impairment charges less net interest
Enquiries:
RPC Group Plc 01933 410064
Ron Marsh, Chief Executive
Pim Vervaat, Finance Director
Kreab Gavin Anderson 020 7074 1800
Robert Speed
James Benjamin
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