Business News
RPC GROUP PLC: Half-yearly results for the six months ended 30 September 2008
Friday 28. November 2008 - RPC Group Plc, Europes leading supplier of rigid plastic packaging, announces today its half year resultsfor the six months ended 30 September 2008and the outcome of its strategic review.
Financial highlights:
? Group revenue up 15.6% at £381.0m (2007: £329.7m)
? Operating profit at £16.0m (2007: £18.7m), before restructuring costs and impairment losses of £11.5m (2007: £10.3m)
? Net cash from operating activities £19.6m (2007: £4.7m)
? Adjusted EPS of 7.2p (2007: 9.5p)
? Interim dividend of 2.9p (2007: 2.9p)
Corporate highlights:
? Creditable underlyingperformance in difficult market circumstances
? Input prices roseto record levelsin first half
? Interim dividend maintained at same level as last year
? Financial position remains solid
Strategic Review highlights:
? Full review of activities and options led by the Board with support from external advisers
? RPC Group focusing on attractive rigid plastic packaging sectors where RPC has strong market positions and good long term prospects
? Significant operational and commercial improvement programme identified (“RPC 2010”) with a pro forma ROCE improvement expected of at least 4 percentage points
? As part of the operational improvements identified a plant optimisation programme is now underway with 8 plants initially to be closed or sold
Commenting on the results, Jamie Pike, Chairman said: “RPC achieved a creditable first half performance in what can only be described as very difficult market circumstances with the combination of input prices rising to record levels and a slowing economy. Looking forward, margins are expected to recover with selling price increases taking effect and polymer prices easing. The Strategic Review has resulted in the launch of the improvement programme”RPC2010″ and the Board is confident this self-help plan will deliver a sustainable enhancement to shareholder value”.