RPC Group

Wednesday, 6th June 2018 09:36 - by Rajan Dhall

This morning we have had an update from RPC who have performed well over the full year ending the 31st of March. The group managed to achieve revenue growth of 36% and also increased the final dividend to 28p an increase of 17%. 

• Revenue growth of 36% to £3,748m driven by acquisitions and organic growth of 2.8%
• Adjusted operating profit increase of 38% to £425.0m with adjusted basic EPS up 16% to 72.0p
• Statutory operating profit increase of 85% to £355.7m with statutory basic EPS up 66% to 61.6p
• Robust cash generation with net cash flows from operating activities increase of 40% to £386.7m
• Final dividend of 20.2p giving a full year dividend of 28.0p, representing an increase of 17% on last year and the 25th year of consecutive dividend growth

Commenting after the report there was no mention of upgrades to the guidance but Pim Vervaat, Chief Executive, said 'I am pleased with the progress made since launch of the Vision 2020 strategy five years ago with record profitability levels achieved this year on a significantly enlarged business whilst establishing a global footprint. I am excited by the many opportunities for the business to further develop both organically and through acquisitions. So keep an eye on this space. 

Looking at the chart I believe a break through the 750p area could represent a good opportunity for a move higher (esp. if volume supports the move) and on the chart there is some traffic in the way but the business look like it has a solid backbone. Elsewhere it does depend on analyst expectations but many brokers notes are suggesting a move above 1000p.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.