29 Mar 2018 07:00
29 March 2018
RPC Group Plc
Trading Statement
RPC Group Plc ("RPC" or "Group"), a leading international plastic products design and engineering company, today releases its scheduled Trading Statement, relating to trading for the period from 1 April 2017 to today. The Group will announce its full year results on 6 June 2018.
Trading performance
The positive trading trends outlined in the third quarter update have continued, and revenue for the full year is expected to have grown significantly versus last year, driven by organic growth and aided by acquisitions, polymer price and foreign exchange tailwinds.
Profitability and cash generation (both before and after exceptional items) are expected to be in-line with management expectations. The Group's financial position remains robust with good cash flow development and significant headroom in its debt facilities.
UK Government environment plan and EU plastics strategy
As Europe's leading recycler of polyethylene film, RPC is continuing its work with the entire plastics supply chain to ensure positive outcomes for the environment. Through its numerous design and innovation centres, the Group continues to develop products that have minimal environmental impact and that can be easily recycled at the end of their life. RPC is helping its customers make the right choices at the design stage by increasing use of its in-house developed tool that uses internationally recognised sustainability measurement criteria, and the Group continues to work closely with policy makers and industry bodies.
The Government has recently announced a Deposit Return Scheme in England, which is expected to cover single-use glass and plastic bottles, and steel and aluminium cans. The scheme is subject to consultation and RPC looks forward to positive discussions with the Government as to the details of the final scheme.
Integration and acquisition update
The European integration programme consisting of the integration of Promens, GCS and BPI is now substantially complete. In total, 22 locations will have closed and over 300 production lines relocated over a three year time period. The Group remains confident of achieving an annual synergy run-rate of €105m by the end of the financial year ending March 2019.
On 13 March 2018 RPC announced the acquisition of Nordfolien GmBH ("Nordfolien") for a consideration of €75m. Nordfolien is a leading player in the design and manufacture of higher added value polythene films for both industrial and consumer packaging markets. It will contribute to the Group's future growth while affording the opportunity to realise an attractive level of cost synergies, without incurring material exceptional costs.
The global packaging market continues to consolidate and, as Europe's largest plastic packaging player, growth through acquisition remains an important part of the Group's strategy; RPC continues to build a healthy pipeline of opportunities.
Capital Allocation
On 19 July 2017, the Group announced an inaugural share buyback of up to £100m over a period of up to 12 months. Under the programme to date 9.64m shares have been repurchased for a total consideration of £83.2m.
Commenting on the statement, Pim Vervaat, RPC's Chief Executive, said:
"I am delighted with the progress the Group has made in the year whilst nearing the successful completion of the European integration programme. We look forward to further developing the business organically and remain excited by opportunities in the ongoing industry consolidation. With our innovation and recycling capabilities, RPC is uniquely placed to help drive a sustainable environment whilst continuing to deliver value to shareholders."
For further information:
RPC Group Plc | +44 (0)1933 410064 | FTI Consulting | +44 (0)20 3727 1340 |
Pim Vervaat, Chief Executive | Richard Mountain | ||
Simon Kesterton, Group Finance Director | Nick Hasell | ||
Clare Banham, Investor Relations Director | |||
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 34 countries, and employs c.25,000 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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