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RPC Group Share Discussion Threads
Showing 1051 to 1072 of 1075 messages
|If you go back to post 1029, press "edit" and change the t's as I said, it will form a link!|
|hTTps - thanks for letting me know|
|I saw that. I thought the writer missed a trick because he cited the threat of rising polymer prices as a potential problem for RPC whereas us old RPC hands know that they are able to recover these increased raw material costs via price adjustments, albeit with some lag (in both directions).
(Edit: by the way, if you replace the 't's with capitals so that it starts hTTps, it will override ADVFN's silly filters and form a link)|
|Nice TP increase.
RPC Group PLC
|Tipped again in The Times today on their 2017 list.|
|Thanks for that shauney2; interesting.|
December 16 2016, 12:01am, The Times
Nothing rubbish about this buyout
RPC is one of those companies, like Bunzl to which it has been compared, that seems capable of finding endless value-creating acquisitions and cost savings. Its name stands for Rigid Plastic Containers and it tends to do large deals, unlike Bunzl, completing four in the past two years.
It is moving away from the sort of packaging required by supermarkets and into more specialist areas, with the proviso that purchases are big users of polymers and offer a return on capital of at least 8 per cent. Management have been making noises about another big deal recently and two duly arrived yesterday.
RPC is buying ESE World, which makes plastic waste containers such as wheelie bins for councils and waste management companies, at two centres in France and Germany. Though the announcement lacks detail, the deal ticks all the boxes.
ESE uses about 4.5 kilotonnes of polymers each year. Though some may be different sorts of plastics than RPC uses, there will be overlap and procurement savings. This was one rationale behind the acquisition in June of British Polythene Industries, which struggled to make headway because of the pricing power of suppliers over smaller customers.
Like BPI, which supplies farmers with films to wrap silage, for example, the acquisition takes RPC further beyond consumer packaging. The return is above 8 per cent and the €262.5 million price represents a multiple that may be a touch higher than RPC has traditionally paid but still seems reasonable.
It also announced yesterday its first move into Southern Africa, the Johannesburg-listed Astrapak for the equivalent of £79 million.
RPC’s half-way figures showed not only further improvement on return on sales but 3 per cent organic sales growth. The company again shifted upwards the expected synergies from earlier deals, a recurring theme. Consensus earnings forecasts were upgraded by about 7 per cent.
The share price graph speaks for itself — selling on 17 times’ earnings, which is about right for a consolidator of this type. The downside is if one of those deals goes wrong — but it hasn’t happened yet. Nothing wrong with taking a bit of profit, but the shares remain a buy.
MY ADVICE Buy
WHY Shares seem fairly rated for a strong business with an excellent record of making acquisitions and then extracting savings from them.|
RPC expected to outperform the market with future of plastic looking bright
...RPC closed last week well below analyst target ranges of £12-£13. As its latest acquisitions are expected to complete next year, there is likely to be more revenue and profit growth to come. It could be a good time to buy.
RPC Group PLC
|Yes, another good deal. What happened to the rumours about them bidding for WestRock? I was hoping for another deep-discounted Rights Issue to fill my boots!|
|great acquisition. onwards to 1200p. IMHO.|
|Another good fit.
RPC acquiring ESE World BV, waste storage solutions E262.5M.
RPC would fund the consideration through its existing debt facilities. The proposed deal represented a strategic opportunity to enter into a high added value polymer consuming segment in a stable and growing European market, with good management and well-established market positions supported by industry recognised branded products. It also represented an excellent fit with RPC's Vision 2020.
Acquisition of a complementary business to RPC's existing materials handling business.
Enhances the Group's overall polymer procurement position.
Provides an enlarged platform to generate cost, purchasing and efficiency savings.
Acquisition expected to be earnings accretive from year 1 with ROCE in excess of WACC, whilst RONOA and return of sales levels are expected to be comfortably ahead of the minimum hurdle levels of 20% and 8% respectively.|
|Very pleasing results.
A couple of paragraphs caught my eye
" Given the recent growth in dividends paid and increase in number of shares in issue, the Group is evaluating a capital reorganisation to create further distributable reserves to enable the Group to continue its progressive dividend policy. This change in the capital structure will be a focus of work in the second half of the financial year.
As we successfully execute our stated Vision 2020 strategy, further attractive opportunities to grow the Group present themselves as the pace of consolidation the industry accelerates. Good opportunities exist for higher added value organic growth whilst at the same time consolidating certain market positions. The second half year has started well'
Good to see they want to continue the progressive dividend policy alongside adding to their growth.
They seem to have a target or targets in there sights.
As jeffian has said i would not mind if they did a discounted rights issue if it was as successful as the previous ones.
A summary from Shares magazine
|Great results. I should have topped up in the mid 900s.|
|best performer this year for me|
Accumulated today... near term £12 share price target (based on P/E 20 for EPS of about 60p)?
The rise in the share price this morning answers your query, as results 'in line' with expectations usually sees the share price fall often due to profit taking. Jeffries target price £11 and Panmure Gordon's target price £11.56 would suggest that they won't be too surprised.
In for the long haul to see the benefits of the 2020 strategy.|
|- RPC Group has hiked its H1 statutory pretax profit by 79% to £72.5m, from £40.5m. Interim dividend was 6.5p a share, from 4.8p.
It said revenue was £1.23bn, from £800m.
"I am very pleased with the overall business performance in the first half year, leading to record profitability levels with solid underlying organic growth and strong cash conversion," said CEO Pim Vervaat.
"Both the GCS and BPI acquisitions, whose integration is well advanced, have performed well with additional cost synergies identified.
"As we successfully execute our stated Vision 2020 strategy, further attractive opportunities to grow the Group present themselves as the pace of consolidation in the industry accelerates.
"Good opportunities exist for higher added value organic growth whilst at the same time consolidating certain market positions. The second half year has started well."
- Revenue, profit and cash flow reached record levels driven by the successful implementation of the Vision 2020 growth strategy;
- Revenues grew 53% reflecting the contribution from recent acquisitions and c.3% underlying organic growth;
- Return on sales improved to 11.1% (2015: 10.3%);
- Adjusted operating profit of £136.3m with the adjusted EPS improving by 45% to 30.7p;
- Strong cash generation with free cash flow at £118m (2015: £57m);
- Significant acquisition (BPI) made during the period, with four further acquisitions completed after the half year;
- GCS organisational integration completed and BPI's integration well advanced. Overall acquisition related steady state cost synergy forecast increased from €92m to at least €100m per annum;
- Interim dividend of 6.5p up 35%.|
|but we dont know is it in line or exceeds|
|A huge wow£11 by the end of the week?|