Rpc Group Regulatory News (RPC)

11 July 2016

RPC GROUP PLC

Trading Update

RPC Group Plc ("the Group" or "RPC"), a leading international plastic products design and engineering company for both packaging and non-packaging markets, issues a trading update for the period from 1 April 2016 to 30 June 2016 ("first quarter") ahead of its Annual General Meeting being held on 13 July.

Trading performance

Revenues in the first quarter were significantly higher than the same period last year due to continued underlying organic growth and the contribution of acquisitions. Adjusted operating profit for the period, at constant currencies, was also significantly ahead of last year and ahead of management's expectations driven by increased sales volumes, the realisation of synergies, a reversal of last year's polymer headwind and a better than anticipated contribution from Global Closure Systems ("GCS"), whose acquisition was completed at the end of March. The Group's results also benefited from a favourable currency translation impact from a weaker sterling versus the euro and US$ as c.75% of the Group's revenues are generated outside the UK.

Good cash flow was achieved in the period and the Group retains a robust financial position with significant headroom under its debt facilities.

Other key developments

The organisational integration of GCS into RPC's Bramlage division is progressing well and is substantially complete. The realisation of the anticipated €80m of total steady state synergies associated with the acquisition of GCS and Promens remains on track.

On 9 June, RPC announced a recommended cash and share offer for the entire issued and to be issued ordinary share capital of British Polythene Industries Plc ("BPI"). BPI shareholders will vote on the proposal on 25 July and, subject to their approval, the acquisition which has already received unconditional merger clearance from the European Commission is expected to complete early August.

Pim Vervaat, RPC's Chief Executive, said:

"The Group's overall performance in the quarter was encouraging with GCS performing ahead of expectations. The anticipated addition of the BPI business will be another significant step in realising our Vision 2020 focused growth strategy. RPC is generally well placed to operate in periods of macro-economic uncertainty, including that which may be caused by the outcome of the UK referendum on the EU, as it has robust market positions in relatively defensive end-markets, particularly in the UK. The weakening of sterling enhances the competitiveness of the UK operations due to the higher cost of imports from mainland Europe, and the Group's position as a modest net exporter from the UK may incrementally benefit its performance."

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