RPC's margins under pressure

RPC, a supplier of rigid plastic packaging, has said that revenue for the fourth quarter is expected to be well ahead of last year due to the inclusion of the Superfos business and higher like-for-like revenues. However, margins have been affected as a result of polymer index prices rising around 20% since the start of the year, although the operating profit for the fourth quarter and full year is set to remain within management's expectations. "The financial position remains robust with a good cash flow development in the fourth quarter and significant headroom under the group's debt facilities," the firm said. The company added that the previously announced withdrawal from the loss-making market segments of automotive components in Germany and vending cups in mainland Europe looks set to cost about £15m. The proceeds from asset sales, together with the release of working capital, are expected to be more than sufficient to fund any redundancy costs. Shares were down 1.89% at 373.8p in early trading on Thursday. NR