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Rigid plastic packaging supplier RPC Group saw net profit halve in the first half as it was hit by restructuring costs and impairment losses, as it launched its 'Fitter for the Future' business optimisation programme to ensure cost efficiency. Net profit for the six months to September 30th totalled £13.9m, down from £26.3m in the same period the year before, after incurring £18.5m of restructuring costs, impairment losses and other exceptional losses (which were £4.1m last year). Nevertheless, adjusted operating profit gained 4% from £45.4m to £47.0m with return on sales improving from 7.7% to 9.1%. Return on capital employed (ROCE) gained from 18.2% to 19.3%, close to its 20% target by March 2014. The company said that it would have at least reached its target "had it not been for the recessionary Eurozone and UK economies from which circa 87% of the group's turnover originates". Sales fell from £587m to £518m year-on-year reflecting the impact of a weaker euro with overall volumes down 3% albeit with an improved sales mix. "This was another creditable performance by the Group in a continually challenging economic environment," said Chairman Jamie Pike.
RPC Group Sell 30-Jul-12 £213,873.00 Ron Marsh 51,848 @ 412.50p
Operating performance beneitted from an improved sales mix and further Superfos synergies, although, as expected, gross margins were negatively affected by the time lag in passing through polymer price variations to the customer base, which is anticipated to reverse in the second quarter as selling prices adjust upwards and raw material costs fall. The cash flow performance was "satisfactory" and the group's financial position has improved compared with the same period last year. Significant head room is available under the group's financing facilities, it said.
RPC Group, a supplier of rigid plastic packaging, has generated first-quarter revenue on a similar level with that seen last year, boosted by growth in higher added value products. However, activity levels in the Spanish and UK markets remain generally subdued, while capital expenditure continues to run above depreciation level as significant investments in growth areas are being made. The firm's departure from mainland European vending cups and automotive components announced in January 2012 is progressing to plan and the closure of the Superfos plant in Runcorn and the associated transfer of the business to other sites was successfully completed. Polymer prices reached record levels in May before falling significantly in June, with further reductions occurring in July, the firm said. Ron Marsh, RPC's Chief Executive Officer said: "It is encouraging to see that the operating profit level achieved in the first quarter is in line with our expectations despite the general macro-economic weakness and having not yet fully recovered the polymer price increases. With the growth in higher added value products set to continue, I am confident that RPC is well positioned to deliver on its strategy."
12 June 2012 Panmure Gordon, reiterates its Buy recommendation for RPC Group, with a target price of 445.00. Canaccord Genuity reiterates its Buy recommendation for RPC Group, with a target price of 435.00. 13 June 2012 HB Markets reiterates its Buy recommendation for RPC Group, but has provided no target price. 02 July 2012 JP Morgan Cazenove reiterates its Overweight rating for RPC Group, with a price target of 445.00 Source: http://sharedealing.nandp.co.uk/quote/?epic=RPC P.S. Here's a couple of links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?threadid=252803 http://www.euroinvestor.com/community/discussionthread.aspx?threadid=253089
Many thanks for your postings on this and many other boards mulledwine; you do a grand job keeping all informed; I don't know where you find the time. Please keep up the sterling work. It amazes me, although perhaps it shouldn't, that after such splendid results the share price can be hammered due to one sentance in the report about the current weakness of the euro to the pound. Although it has been stronger, the excange rate hasn't changed drastically imo, but obviously will have some effect on profit. Any hint of negativity at present by any company and the market makers set about them like a terrier. Of course it is in their interest to cause uncertainty and votality. All very frustrating. Regards CM
12-Jun-12 RPC Group RPC Panmure Gordon Buy 371.20p - - Reiteration
Shares in plastic packaging firm RPC Group dropped despite the firm hiking its dividend after the successful acquisition of food packaging firm Superfos helped drive up profit in the year to the end of March. However, the firm noted that in the short term it was facing a difficult and uncertain macro-economic environment.
Outlook The outlook for the Group remains positive with good growth opportunities existing both in more mature European and US markets as well as emerging markets. Following the successful integration of Superfos and the planned withdrawal from the loss making businesses of vending cups in mainland Europe and automotive components in Germany, the Group has improved its competitive cost base and strengthened its leading market positions. The Group is on track to achieve its targeted ROCE of 20% in the year ending March 2014. In the short term the Group is contending with a difficult and uncertain macro-economic environment whilst the current weakness of the euro against sterling should be noted as a significant part of the earnings are made in the euro zone. The new financial year has started satisfactorily with results in line with management expectations.
Impressive figures
Commenting on the results, Jamie Pike, Chairman, said: "It is pleasing to report yet another record performance. The Superfos business has been successfully integrated and has made a significant contribution whilst the growth in higher added value products continued. Very good progress has been made towards achieving our stated 20% ROCE target. Notwithstanding the current economic uncertainties, following the significant increase in underlying earnings after the Superfos acquisition the Board is proposing to increase the final dividend to 10.2p representing a full year increase of 25%."
Preliminary results for the year ended 31 March 2012 RPC Group Plc, Europe's leading supplier of rigid plastic packaging, announces today its results for the year ended 31 March 2012. Highlights: § Revenue increased by £311m to £1,130m due to the full year impact of Superfos and 5% growth on a like-for-like basis with underlying overall volumes on a similar level to last year; § Adjusted operating profit improved by 68% to £93.5m (2011: £55.8m); § Adjusted EPS increased to 37.3p (2011: 29.9p); § Record net profit achieved of £44.7m (2011: £25.6m); § Strong cash performance with net cash from operating activities at £100.1m (2011: £69.3m) and net debt reduced to £167.9m (2011: £178.7m); § Final dividend of 10.2p recommended giving a total year dividend of 14.4p (2011: 11.5p); § ROCE of 19.1% ahead of expectations (2011 pro-forma: 15.1%); § Superfos integration largely completed with synergies of £10m achieved in first full year of ownership.
http://www.investegate.co.uk/Article.aspx?id=201206120700021292F
Sorry folks, meant RPC not RNO subject. Mind you, same could apply to RNO. CM
Stone the crows and starve the lizards!,............RPC has ended the day up!. Sure things will be ok. just a matter of sitting tight. Good luck all. Regards CM
Having trawled the FTSE All share Index, using strict criteria to invest on the back off, I came across RPC. It met all of my criteria, and although it has fallen back a little of late I have invested. The fundamentals look very good, looking at the p/e ratio, eps, PEG, institutional investment, no. of shares issued (not too many), and the latest report and chairmans comments, plus RPC pays a dividend. Think the retrace is only temporary before rising again. Good luck all. Regards CM
Coffee capsules such as Nestle's Dolce Gusto and Kraft's Tassimo have proved a hit with caffeine-loving consumers – and the packaging for these products has been developed and manufactured by RPC Group. The company, which counts consumer goods giants such as Unilever as well as smaller, local businesses as customers, continues to benefit from its purchase of peer Superfos and its new strategic direction. (…) The improvement in the sales mix towards higher margin products such as pharmaceutical devices and coffee capsules has continued to boost margins. Questor spoke to Pim Vervaat, RPC's finance director, on Friday, and he said that although the company was looking at potential acquisitions, RPC would only buy quality assets that meet its long-term financial targets. The company will not just buy top-line growth. Expansion into emerging markets is also a possibility. Trading on a March 2013 earnings multiple of 9.6, the shares do not look expensive and are yielding 3.5%. Last tipped at 336.3p in December, the shares are up 12% in less than two months. Buy, says The Sunday Telegraph´s Questor team
RPC (RPC) is one of Panmure Gordon's top picks for 2012, with a target price of 462p. The broker says that 2011 was a transformational year for the packaging company, with the fruition of its reorganisation strategy and the acquisition of plastic and cardboard packaging group Superfos. Despite difficult conditions in a number of markets, Panmure notes that that the firm has seen increased volumes in areas such as coffee capsules, and expects the acquisition to offer cross-selling opportunities. The broker forecasts earning per share growth of 25.8% in 2012 to 37.6p, climbing to 42p in 2013, putting RPC on a prospective multiple of 9.7 times, falling to 8.7 times. The shares gained 5.7p to 366p
Bid: 351.10 Ask: 352.60 Change: 16.50 (+4.91%) . Now this is what I would have expected yesterday. Better late then never. Dec 1 (Reuters) - RPC Group PLC: JP Morgan raises RPC Group PLC price target to 410P from 394P For a summary of rating actions and price target changes on European companies http://www.lse.co.uk/FinanceNews.asp?ArticleCode=xgsz9foufs09pl0&ArticleHeadline=BRIEFRESEARCH_ALERTJP_Morgan_raises_RPC_Group_price_target
RPC is Europe's leading supplier of rigid plastic packaging, with operations in 18 countries, and Garry White, writing as Questor in the Daily Telegraph, reckons you should buy the shares for future growth. Yesterday's interim numbers were strong, Questor maintains. One good measure of RPC's performance is return on capital employed (ROCE), a measure of the efficiency and profitability of a company's investments. In the first half of this year ROCE came in at 18.1pc compared with 15.1pc in the last full year. RPC is looking to improve this measure to 20pc by 2014. Some of RPC's markets are obviously hit by the recession – tighter household budgets mean there are fewer paint pots being sold, and fewer office workers means fewer plastic cups. However, once the recovery starts – whenever that is – the company has a lot of "operational gearing" so profits should rise higher than revenues when volumes start to pick up.
RPC Group plc announced that it has proposed interim dividend for the year ending March 31, 2012 of GBP0.042 (2010: 3.4p) per share will be paid on January 27, 2012 to shareholders on the register at close of business on December 30, 2011. It has not been included as a liability as at September 30, 2011. http://www.reuters.com/finance/stocks/RPC.L/key-developments/article/2442307
30 November 2011 | 07:08am StockMarketWire.com - Plastic packaging specialist RPC Group said today that revenue was significantly higher at £586.7m in the half-year to end-September (2010: £381.9m). The increase was due to inclusion of Superfos and an 11% increase in sales on a like-for-like basis. Overall volumes were similar to last year with the sales mix improving and higher polymer prices passed through to the customer base. Adjusted operating profit increased to £45.4m (2010: £21.8m). Adjusted EPS at 18.3p (2010 restated: 11.7p). Net profit doubled to a record £26.3m for the period (2010: £13.1m). ROCE improved to 18.1% versus a pro-forma 15.1% for the year ending March 2011 RPC reported a satisfactory cash flow performance with cash generated from operations at £30.9m (2010: £27.1m). The group said the Superfos integration was progressing well with accelerated synergy realisation. Interim dividend is up to 4.2p (2010: 3.4p). Jamie Pike, Chairman, said: "RPC has delivered a very good first half year performance with the integration of the Superfos business progressing well and synergies anticipated to be £9m for the year ending March 2012. Whilst macro-economic uncertainties have increased, the Group has made significant progress towards achieving its stated aim of 20% ROCE by March 2014." http://www.stockmarketwire.com/article/4267175/RPC-profits-surge.html
Typical of today's market - strong announcement and the SP falls - what mad times we live in ... FLASH: RPC Group net profits double http://www.stockmarketwire.com/article/4267215/FLASH-RPC-Group-net-profits-double.html
Things are going well at plastic packaging company RPC Group, a firm which was first recommended on July 26 2009 by the Questor team at the Sunday Telegraph. Adjusting for last year's rights issue, the entry price was 240p. The shares are now 38% higher. In fact, RPC recently said that profits in the first half of this year would be "significantly" higher than last year. Several factors explain the improvement seen, such as the consolidation of recently acquired (and strategic) Superfos, an improvement in like for like sales, a successful cost cutting programme, the easing in polymer prices and the company´s “pricing power” (ability to pass on higher raw material costs). As if all of the above were not enough, shares are trading at a March 2011 earnings multiple of 9.3, falling to 8.2 next year. In Questor´s own words, “this looks cheap considering that the company is expected to post a growth in earnings of 16% this year and 14% next year. Also, many of its end markets are defensive.” Lastly, the prospective yield is 3.9%, rising to 4.3% next year. For all of the above reasons Questor says Buy.
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."