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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 30 November. Performance first half year 2011/12 Revenue in the first half of the financial year is projected to be significantly higher compared with the corresponding period last year due to the inclusion of the Superfos business as well as higher like-for-like turnover. The sales mix has substantially improved as a result of continuing growth in higher added value products such as pharmaceutical, long shelf life, personal care and coffee capsules. Investments to facilitate further growth in these areas are progressing well. Operating profit (before exceptional items) in the first half year will be ahead of the corresponding period last year due to the inclusion of the Superfos results and the associated synergies as well as an improving like-for-like profitability. This is driven by the better sales mix, efficient cost base and a less adverse impact from the time lag in passing through polymer prices to customers as polymer prices show a declining trend since the end of May. The adjusted profit after tax* is expected to be ahead of management expectations. The Group continues to have a robust financial position with cash flow performance in the first half year anticipated to be again satisfactory. Superfos integration The integration of Superfos continues to progress very well with the business operating as a separate cluster within the overall Group structure whilst the purchasing function has been centralised. Changes in the head office cost structure have been implemented and key management retained. The realisation of cost and revenue synergies is running ahead of plan with the full year synergies for 2011/12 now estimated to be at least £7m compared with the previous estimate of £5m. As outlined previously, steady state synergies of between £15m and £25m are expected to be realised in financial year 2013/14.
http://www.investegate.co.uk/Article.aspx?id=201109300700162203P
In a move to focus on its core markets, RPC Group (RPC) has sold its Bramlage Verschlusse wines and spirits closures manufacturing business. The value of the gross assets was 2.9 million euros (2.55 million pounds), and the rigid plastic packaging manufacturer will use the funds to further its growth strategy in the German market. The subsidiary was sold to German bottle-cap maker Rauh, which has been working closely with the company for the last five years
http://www.investegate.co.uk/Article.aspx?id=201108150700113449M
Oriel Securities initiates RPC Group as add with 380p target price.
JP Morgan reiterates overweight on RPC Group, target price reiterated at 394p
RPC Group, formerly Rigid Plastic Containers, makes basic receptacles for various consumer products. The cost of polymers is about a third of the company’s turnover, and prices rose by 20% the last financial year to the end of March, continuing to increase thereafter. RPC reckons to be able to pass on those increases to customers such as McBride, albeit with a delay and an inevitable impact on margins. The shares, up 10p at 354¾p , are selling on about 10.5 times’ forward earnings, but this suggests no real reason to chase, says the Times.
CEO on BBC business news
§ Steady state profit synergies related to Superfos acquisition anticipated of £15m to £25m together with £20m of working capital cash synergies. Commenting on the results, Jamie Pike, Chairman, said: "It is very pleasing to report another record performance ahead of market expectations. The RPC 2010 programme was successfully concluded thereby ensuring that the Group has the earnings capacity to deliver an average ROCE of at least 15% across the economic cycle. The Superfos acquisition will enhance profitability with the integration progressing well. The Group is well positioned to deliver on its growth strategy. In light of the Group's financial performance and prospects, the Board is proposing to increase the final dividend per share to 8.1p, implying a full year increase of 37%."
RPC Group Plc, Europe's leading supplier of rigid plastic packaging, announces today its results for the year ended 31 March 2011. Highlights: § Sales increased by £99.3m to £819.2m due to 9% growth on a like-for-like basis and the inclusion of £37.5m Superfos turnover as from the 18 February acquisition date; § Adjusted operating profit improved by 36% to a record £55.8m (2010: £40.9m); § Adjusted EPS increased to 29.9p (2010 restated: 21.1p); § Net profit improved by 94% to a record £25.6m (2010: £13.2m); § Strong cash performance with a free cash flow of £50.9m (2010: £60.1m); § Net debt increased to £178.7m (2010: £80.2m) with £115.5m additional debt assumed to fund the Superfos acquisition; § Final dividend of 8.1p recommended giving a total year dividend of 11.5p (2010 restated: 8.4p); § RPC 2010 programme successfully concluded with the like-for-like ROCE rising to 14.6% compared with 9.1% in the year preceding the programme;
http://www.investegate.co.uk/Article.aspx?id=201106210700067706I
RPC makes rigid plastic packaging in 11 countries in the European Union and the United States. There are issues with RPC not least rising polymer prices, its raw material. However the company is usually able to pass these costs quickly on to the customers. The pace of RPC’s acquisition programme might cause some concern but looks consistent with the group’s trading ambitions. RPC’s rating does not appear that demanding. RPC could merit further inspection. Buy, says the Scotsman.
RPC Group (RPC) is the best looking new tip this week. RPC Group has broken to all time new highs this week. The On balance volume chart is also looking good with the break to new highs showing that there are more buyers than sellers. Use a 20% stoploss from here. From David Linton of TipsTracker.com
from mail on sunday http://www.dailymail.co.uk/money/article-1370232/MIDAS-JOANNE-HART--375m-takeover-help-Yule-Catto-grow-Asia.html
Commenting, Ron Marsh, RPC's Chief Executive Officer, said: "It is very pleasing to see that the overall performance of the Group has improved and is ahead of our expectations despite the headwind we have faced this financial year in terms of rising polymer prices. Margins will be enhanced going forward as the sales mix continues to move towards higher added value products. The Superfos acquisition will further strengthen the enlarged Group as we continue the integration and benefit from the synergies that exist. I am confident in the Group's growth prospects based on leading market positions, good technological capabilities and exciting new product initiatives, supported by a strong financial position."
http://www.investegate.co.uk/Article.aspx?id=201103240700095168D
RPC passes on higher plastics prices By Benjamin Chiou Date: Thursday 24 Mar 2011 LONDON (ShareCast) - Higher selling prices and increased volumes at plastic packaging supplier RPC mean that revenues in the 2010/11 financial year will be well ahead of last year. The group said that it was able to pass through rising polymer prices to customers and saw significant growth in the higher added value sectors of pharmaceutical, personal care, long shelf-life and coffee capsules. However, a time lag on passing on these increases has had a significant negative impact on full year margins. “The group is confident in its capability to pass through both the most recent and any future polymer price increases,” the statement said. While polymer prices have surged by 20% since January and reached record levels, operating profit and adjusted pre-tax profit should still exceed management’s expectations. Last month, RPC acquired European injection moulded plastic packaging firm Superfos Industries for €240m, and expects the cost and revenue synergy potential of the enlarged group to be around £5m in 2011/12, and in the range of £15-25m per annum from the third full year after the acquisition. “It is very pleasing to see that the overall performance of the Group has improved and is ahead of our expectations despite the headwind we have faced this financial year in terms of rising polymer prices,” said chief executive officer Ron Marsh.
Panmure Gordon reiterated its "buy" rating for RPC Group (RPC), the plastic packaging manufacturer, with a 336p target price. Given the group's leading technology and strong balance sheet that leaves it at a considerable advantage to a number of competitors when winning business, the broker believes the group is very well placed within its space. Moreover, with the possibility for both operational efficiencies and cash generation, Panmure added that both the short and medium term benefits of the recent Superfos acquisition could be "material."
i'm the 1st, it was good for me!!
Starting to make a profit on this now. up nealry 6% today. Many brokers rating this a good but predicting 330 top price. Funny how no one else seems to be interested in this share.
I do not know if anyone is watching these shares but I bought in at 256 so a little down at the mo. However event though there has been a lot of sell off recently I still think there is potential here. What does anyone else think?