28 Sep 2017 07:00
28 September 2017
RPC Group Plc
Pre Close Trading Statement
RPC Group Plc ("RPC" or "Group"), a leading international plastic products design and engineering company, today issues a pre close trading statement relating to the period 1 April 2017 to 30 September 2017 ("first half" or "period"), ahead of its first half results announcement due to be published on 29 November 2017.
Revenues in the first half of the year are projected to be well ahead of the corresponding period last year driven by the contribution from acquisitions, organic growth, polymer price tailwinds and translation benefits from foreign exchange movements. Group margins and profitability levels (before and after exceptional items) are anticipated to be ahead of management expectations, with profitability levels significantly up on the same period last year due to the contribution of acquisitions, the realisation of synergies, organic growth, lower exceptional costs and a foreign exchange benefit more than offsetting a modest polymer headwind. Our investment in innovation for both product design and process engineering continues to drive a healthy pipeline, and the Group remains confident of continuing to grow through the cycle ahead of GDP. In the first half good growth has been achieved in China benefiting from investments made in the previous year.
The integration of Letica continues to progress well and the Group remains encouraged by the opportunities resulting from this acquisition. Both the realisation of acquisition related cost synergies and the costs of achieving these synergies have continued in line with expectations.
The Group's financial position remains strong, with good cash flow development in the first half, and it has significant headroom under its debt facilities.
On 19 July 2017 the Group announced an inaugural share buyback programme of up to £100m. Under the programme to date, 1.38 million shares have been acquired for a total consideration of £12.4 million.
Commenting on the performance in the half year, Pim Vervaat, RPC's Chief Executive, said:
"The Group has progressed well in the first half with an encouraging trading performance whilst successfully integrating recent acquisitions and realising the associated synergies. We continue to successfully execute our Vision 2020 growth strategy."
For further information:
RPC Group Plc | +44 (0)1933 410064 | FTI Consulting | +44 (0)20 3727 1340 |
Pim Vervaat, Chief Executive | Richard Mountain |
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Simon Kesterton, Group Finance Director | Nick Hasell |
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Clare Banham, Investor Relations Director |
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About RPC Group:
RPC is a leading plastic products design and engineering company for packaging and selected non-packaging markets, with over 32 innovation centres and 194 operations in over 34 countries, and employs more than 24,900 people. The Group develops and manufactures a diverse range of products for a wide variety of customers, including many household names, and enjoys strong market positions in many of the end-markets it serves and the geographical areas in which it operates. It uses a wide range of polymer conversion technologies in both rigid and flexible plastics manufacture, and is now one of the largest plastic converters in Europe, combining the development of innovative packaging and technical solutions for its customers with good levels of service and support.
For further information please visit: www.rpc-group.com
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