RPC Group PLC Pre Close Trading Statement (0299S)

TIDMRPC

RNS Number : 0299S

RPC Group PLC

28 September 2017

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 GBP100m. Under the programme to date, 1.38 million shares have been acquired for a total consideration of GBP12.4 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:

 
                                                                   [phone] 
 RPC Group Plc        [phone]        FTI Consulting      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 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

Follow us on Twitter: @rpc_group

This information is provided by RNS

The company news service from the London Stock Exchange

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September 28, 2017 02:01 ET (06:01 GMT)