Thursday tips round-up: RPC, Workspace

Packaging manufacturer RPC's financials have two main drivers: macroeconomic trends and its success in moving away from what it calls 'commoditised packaging' in search of higher margins. On the first of those fronts, its markets in the Eurozone saw some recovery, such as in Spain, the UK and in the Nordic countries. As for the latter, after an acquisition last May the firm managed to begin to diversify away from the single currency area, which up until then had provide up to two thirds of its business. Bolstering its drive for margins, last December it acquired M&H Plastics, a British manufacturer of personal care products, followed by the purchase of ACE. The latter fabricates differentiated packaging for the US automotive industry. The firm is also looking to establish a beachhead in Latin America. Another key aspect of the outfit is that it has not cut its dividend since coming onto the market in 1993. Furthermore, there is no reason why they should not grow at 10% a year going forward. "The shares have done well since the summer, but they look worth holding for further progress," writes The Times' Tempus.Workspace seems to have a knack for turning unusual properties into the idiosyncratic office environments which small businesses, often high-tech or media concerns in expansion, really want. From a business perspective that means that it has been picking up assets on the cheap. Thus, the valuation on the company's portfolio of properties in the capital has soared by 27% over the year to March. Among some of those properties in question is the Pill Box, the old Allen & Hanburys factory in Bethnal Green, which is benefiting from those who can no longer afford to Shoreditch. Tacking on an 8.5% rise in the rent roll on a like-for-like basis then gets you to a startling 43% increase in net assets per share to 496p. Nonetheless, that also means that at 608.5p the stock is trading at a premium, so much so that further progress may be limited. "The nervous might consider taking some profits," Tempus writes.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.AB Workspace