Rpc Dividends - RPC

Rpc Dividends - RPC

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Rpc Group Plc RPC London Ordinary Share GB0007197378 ORD 5P
  Price Change Price Change % Stock Price High Price Low Price Open Price Close Price Last Trade
  0.00 0.0% 792.60 0.00 0.00 0.00 792.60 00:00:00
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Industry Sector

Rpc RPC Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

jeffian: That's not going to happen! "If any dividend and/or other form of capital return or distribution is announced, declared, made or paid by RPC in respect of RPC Shares prior to the Effective Date, the Consideration payable in respect of each RPC Share under the Acquisition will be reduced by the amount of all or part of any such dividend and/or other form of capital return or distribution (although RPC Shareholders will be entitled to receive and retain that dividend (or other distribution))."
phillis: whizzer Whilst we wait for the last rites explain your post if you will (can) "A Share-Swap is not a cash transaction, it is a synergy risk which in this instance is shared by Berry and RPC. The ratio difference between the Berry share price and the RPC share price is then applied to the share exchange between the two companies. The £8 sale referred to in P/N 3471 IMOP is a share exchange and not a cash sale.) "
billywhizz1: Hope this announcememt extract helps: If any dividend and/or other form of capital return or distribution is announced, declared, made or paid by RPC in respect of RPC Shares on or after the date of this Announcement and prior to the Effective Date, the Consideration payable in respect of each RPC Share under the Acquisition will be reduced by the gross amount of all or part of any such dividend and/or other form of capital return or distribution.
sogoesit: From BearBull in the IC: Title: Ignoring Apollo. “When a master of the universe speaks, you listen. It’s not just that the New York-based private-equity firm Apollo Global (US:APO) names itself after Greek mythology’s most important god; it’s more that the $250bn (£192bn) fund manager was founded by a real ‘master of the universe’ – Leon Black, a legendary figure in the US finance industry, although certainly not a mythical one, who was the right hand of Michael Milken, the 1980s junk-bond king. While Mr Milken ended up in prison, Mr Black founded Apollo and became even more fabulously wealthy than his one-time mentor. Thus Apollo spake unto the directors of the UK’s second-biggest packaging group, RPC (RPC), who were keen to sell their company. Apollo said it would make a distinctly low-ball offer – 782p a share in cash; but they had better take it or leave it because it was the only one the firm would make. RPC’s directors gave a breathless “oh yes, please” and recommended Apollo’s offer. This has hacked off some of RPC’s institutional shareholders because the offer does look pretty unexciting. However, there is now a second suitor talking to the maker of stuff such as bottles for Heinz tomato ketchup and tins for Dulux paints – Berry Global (US:BERY), a packaging group floated by Apollo in 2012 and in which it still has a stake. The background is the directors’ conviction that RPC must grow by acquisition. And the clear inference in their unconvincing recommendation of Apollo’s offer is that they feel that listed status shackles the group. Or, as they put it, “differing investor views on the appropriate level of leverage have been a constraint on RPC’s opportunities and growth”. Without a counterfactual, we can never know, yet that statement does not readily tally with the facts. These past five years RPC has binged on acquisitions. It’s hard to imagine that its bosses could have done more without biting off more than they could chew. Spending on acquisitions has dwarfed any other category of capital allocation, especially its internal equivalent, growth by capital spending. In the five years to 2013-18, capex totalled a bit more than depreciation – £680m against £574m – but that compares with almost £2.1bn cash spent on acquisitions. Meanwhile, almost all the funds for this growth were sourced externally. Cumulatively, RPC generated free cash of just £327m in that period while it raised just over £2bn in almost equal amounts of debt and equity. Clearly, this leveraging has had the desired effect on performance. RPC has become a more productive beast – in 2017-18, gross profits per employee were 13 per cent higher than five years earlier even though employee numbers had more than tripled. In the same period, revenues rose by the same proportion while pre-tax profits quintupled to £317m and basic earnings quadrupled to 62p. Even the dividend, whose movements should be comparatively staid yet reliable, doubled to 28p. True, free cash – arguably the best long-term measure of profitability – is lagging. It came in at 35p per share in 2017-18, barely more than half the accounting earnings figure. It is feasible to ascribe that to RPC’s acquisition-driven growth, sucking working capital, interest and cash taxes out of the group. Yet even free cash has been moving strongly in the right direction. In increments of approaching £50m a year, it went from nothing to £145m in the three years to 2017-18. Besides, there is nothing wrong with RPC’s basic aim of growing by acquisition. On the contrary, in a low-growth industry such as packaging, where fixed costs are high and economies of scale especially powerful, it seems the one to pursue. So why do RPC’s bosses seem so miffed? Quite likely because the share price has responded indifferently to their efforts. At its current 793p, it is 26 per cent lower than its peak two years ago. That said, it is still 50 per cent higher than it was five years ago, which compares with a gain of just 11 per cent from the FTSE All-Share index. Not surprisingly, they see the solution in the arms of private equity where they can run RPC “without the costs, constraints and distractions associated with being a listed company”, as they say in the offer document. And there is the point – which somehow doesn’t get mentioned in the document – that they may well have the prospect of making even more moolah with RPC being private-equity owned than as a listed company. Yet this brings little benefit to the people who currently employ them – RPC’s shareholders. All that Apollo’s bid offers them is a miserly 14 per cent uplift on the share price immediately before the directors announced they were in bid talks last September and an exit earnings multiple way below the average of RPC’s global peer group – 10.7 times forecast earnings against 14 times. True, the arrival of Berry Global may improve the exit returns, but don’t expect a bidding war – as Apollo’s offer is final it can’t be raised without special permission from the Takeover Panel. In which case, RPC’s shareholders may have to make the best of a bad job. That would mean persuading New-York-listed Berry Global to include an equity component in any offer it makes, which would allow them to share in the future gains accruing from RPC’s acquisition strategy. Failing that, they should tell RPC’s bosses to stop whingeing, get on with the good work and don’t listen to masters of the universe.“
whatsyourgame: Michael Pooler - Financial Times 31 January 2019 "Berry Global Group, the US plastic packaging company, is seeking to gatecrash the £3.3bn takeover of its UK competitor RPC by a private equity firm. Berry revealed on Thursday that it was considering a cash offer for the FTSE 250 manufacturer, one of Europe’s largest plastic packaging makers, and had requested diligence information. The news comes just over a week after RPC recommended a cash offer from Apollo Global Management, following more than four months of talks and just hours before the expiry of a deadline for the bidder to make its intentions clear.  However two major shareholders, Aviva Investors and Royal London Asset Management, criticised the bid as undervaluing the company.  Apollo’s final offer of 782p for each RPC share is a 15.6 per cent premium on the stock’s closing price on September 7, the last day before discussions with Apollo were confirmed. Some analysts said it was low, but discounted the idea of an alternative buyer emerging so late in the process. Shares in RPC rose 3.7 per cent on Thursday to 795p as investors digested the possibility of a higher bid.  Indiana-based Berry said there was no certainty it would make an offer. “A competing offer from an industry player such as Berry, at a premium to the current valuation can be justified, in our view, offering scope for an enhanced offer for shareholders,” said Kevin Fogarty, an analyst at Numis.  RPC confirmed it had received Berry’s request for information, adding that it would engage with its new suitor in accordance with the takeover code and “in the interests of delivering best value to shareholders”. The UK-based company makes plastic products such as bottle tops, paint pots and asthma inhalers and has grown rapidly through a series of deals to reach annual turnover of £3.75bn. But questions over its ability to convert profits into cash, and concerns about the impact of tougher rules on plastic packaging, have weighed on its share price over the past year. Until December, it was also in talks with another private equity group, Bain Capital. Berry, which supplies products including prescription vials, drinks cups and tapes and generated revenues of $7.1bn in 2017, was owned by Apollo before it was floated in 2012."
snowydays: By Ben Dummett and Miriam Gottfried Updated Jan. 21, 2019 12:37 p.m. ET Private-equity giant Apollo Global Management APO 2.40% LLC is in advanced talks to acquire RPC Group RPC 0.25% PLC, one of Europe’s biggest packaging companies, for more than $3.8 billion, according to people familiar with the matter. A deal could be announced as soon as Tuesday, marking the culmination of a protracted negotiation against the backdrop of mounting uncertainty over divorce talks between the European Union and the U.K., where RPC is based. Some bankers have suggested that political uncertainty and the resultant stock and currency-market volatility could crimp deal-making in the U.K., making it trickier for buyers and sellers to agree on a sale price. But the Apollo-RPC agreement offers further evidence that this view may be overly pessimistic for private-equity firms. Earlier this month, buyout firm Clayton Dubilier & Riceagreed to purchase a majority of U.K. catering operator WSH Investments Ltd. for $1 billion, including debt. The expected deal for RPC comes as the world’s major buyout firms are under pressure to invest the record amounts of cash they have raised to collect lucrative fees from their investors. In 2017, Apollo raised $24.56 billion for the largest-ever buyout fund. RPC, which designs and makes plastic packaging for food, beverage, personal-care and other sectors, first disclosed in September that it was in talks with both Apollo and buyout rival Bain Capital about a possible sale. Bain withdrew from the bidding in early December. Out-of-favor publicly traded companies or their divisions are often attractive targets as their relatively large size allows the cash-rich PE firms to invest the funds expeditiously to start generating returns. Last year, private-equity firms in Europe spent $61.1 billion on acquiring publicly traded companies—the largest annual sum since 2007, according to Dealogic. Driven largely by acquisitions, RPC grew revenue by 36% to £3.75 billion ($4.83 billion) for the year ended March 31, 2018, from the prior period, while net profit rose 92% to £253.4 million. Still, the company’s free cash flow fell 4% over that time, helping to explain RPC’s weak stock-price despite its earnings and profit growth. Investors have also been worried that efforts by the European Union to clampdown on plastic waste would reduce demand for RPC products. RPC, which employs about 24,000 people globally and operates in more than 33 countries, has said it doesn’t make any of the products that the EU is targeting. Before it first disclosed possible sale talks in September, RPC’s stock had declined 22% last year. It then jumped as investors bet on a deal, but it has since languished as talks with Apollo dragged amid political turmoil in the U.K. that increased the risk of no deal. That share-price weakness, though, represents an opportunity for Apollo if it can overcome the manufacturer’s challenges. Apollo’s offer price couldn’t be learned. On Thursday, RPC’s stock recently traded in London at £7.29, giving it a market value of £2.96 billion ($3.8 billion) and the private-equity firm is expected to pay a small premium to that level. The RPC deal isn’t particularly big for Apollo, but the acquisition will somewhat ease the pressure that the buyout firm is under to invest its cash hoard after dropping out of some auction processes for big acquisitions. Last year, Apollo withdrew from the bidding for the specialty chemicals business of Dutch paints maker Akzo Nobel NV, which a Carlyle Group LP-led group acquired in a €10.1 billion ($11.49 billion). Write to Ben Dummett at ben.dummett@wsj.com and Miriam Gottfried at Miriam.Gottfried@wsj.com
snowydays: Jeffian, the link was to an article dated 27 Dec which I thought might be of interest to some people. I note that the full article might not appear for some readers so I will copy it below. ,....................... Apollo Global Management has been given another extension to make a formal offer for plastic packaging specialist RPC Group (RPC). The private equity group now has until 18 January to table a bid, with RPC noting that Apollo’s “due diligence is now substantially complete”, so it’s conceivable that an offer could emerge prior to that date. RPC:LSE RPC Group PLC 1mth Today change 1.57% Price (GBP) 647.40 If a formal offer is tabled, it could flush out rival bids, particularly if it’s perceived as a low-ball approach. And despite the continued furore in the western media over the industry’s links to maritime pollution, the push towards consolidation shows little sign of abating with commercial incentives still intact – and expanding. Market research from Radiant Insights shows the global rigid plastic packaging market growing at a compound annual rate of 5.57 per cent through 2018-2022, as “applications are rising enormously across the globe”, primarily due to the rapid growth in the e-commerce sector. Another significant factor is the increasing demand for pharmaceutical products among Asia’s rapidly expanding middle classes. None of this would have gone unnoticed by the private equity industry. By now, you would imagine that any financial permutations arising from European directives on packaging recycling rates and the phasing-out of ‘single-use217; plastic packaging would be factored into share prices, though government commitments remain suitably woolly at this point. Nevertheless, it’s reasonable to assume that regulatory risks are increasing and will have a greater impact on valuations than in previous years. IC View Even so, what you might ascribe as ‘fair value’ to RPC shares rather depends on whether you concur with the criticism of the group’s accounting treatment levelled by Northern Trust Capital Markets in 2017. Certainly, as Peel Hunt notes, the group’s forward price/earnings and cash-profit multiples are significantly adrift of the implied rates from Amcor’s (ASX: AMC) $5.25bn (£4.14bn) bid for US packager Bemis Co (NYSE: BMS). And we have also witnessed a step-up in the number of short positions on the stock. But the fact that Apollo is still in the mix, having had access to due diligence materials for an extended period, suggests that it doesn’t perceive any glaring anomalies within the numbers. So, shareholders should sit tight for the moment, as any formal approach is likely to be at a marked premium to the current share price of 654p, an undemanding 8.5 times Bloomberg consensus earnings. Hold.
cashcow5: From Motley Fool (4/9/18) "Plastic fantastic Now Assura doesn’t come cheap, the firm sporting a forward P/E ratio of 19.7 times, which sits outside the widely-regarded value territory of 15 times and below. Whilst I reckon its leading position in this particular defensive medical market warrants a ‘lively’ premium, investors on the hunt for classic value may be more interested by RPC Group (LSE: RPC) which carries a prospective earnings multiple of 9.2 times. Although concerns over the way the company funds acquisitions has weighed on its share price more recently, I believe that these fears are now baked into the plastics packager’s rock bottom valuation. The FTSE 250 play has pruned its operations and divested non-essential divisions to boost its balance sheet to help it continue on its M&A-led growth path in recent times too. Moreover, whilst fears over plastics regulations from the EU have also put a dampener on investor appetite in 2018, RPC’s drive to develop its products with customers in line with modern environmental concerns should still provide the scope for it to keep winning plenty of business. Dividends have risen for 25 consecutive years over at RPC, culminating in a reward of 28p per share for the year ended March 2018. It’s no surprise that expectations of further profit growth (of 5% this year and 7% next year) lead the City to anticipate extra significant payout growth as well. A 30.2p reward is anticipated for the current fiscal year, meaning a chunky yield of 4.3%. And in fiscal 2020 the dial moves to 4.7% thanks to the predicted 32.5p dividend. RPC remains a stock to buy today and hold for years, in my opinion."
sogoesit: “More Notes on RPC” from this week’s IC: “In last week’s Telegraph, Tom Rees noted recent speculation that RPC (RPC) could become a target for private equity firms given its shares have been on a downward trajectory since the final quarter of 2017. That the plastic packager should end up in the crosshairs isn’t all that surprising, though ironic given that its perceived weakness in some quarters is down to an acquisition spree – 10 deals in a little over 12 months – which critics of the group, specifically broker Northern Trust Capital Markets, said had masked disappointing capital returns and cash flows. Or as Paul Moran, head of research, describes it: “stripping out losses that are embedded in acquisitions in the [profit and loss account (P&L)] post consolidation mostly through provisions (cash losses, not P&L) and claiming this as growth”. Ostensibly, there wasn’t much to spook investors in RPC’s March year-end figures, with total provisions and other liabilities down 44 per cent year on year to £90.6m, while net cash flows from operating activities were up 40 per cent to £387m. Despite the surge of M&A activity, the group maintains that returns remain well ahead of the weighted average cost of capital. But the accounting treatment that Mr Moran has been highlighting, namely the application of provisions for off-market contracts, enables companies to mask or distort returns through the creation of provisions on the balance sheet for acquired assets at the time of consolidation. Theoretically, this practice can hide a multitude of sins if a company remains in the buyers’ circle and the treatment is employed repeatedly. But if the acquisitions dry up it should be easier to determine the effects of this treatment on cash flows. RPC has previously stated that the dilutive effects of lower-margin acquisitions had periodically weighed on profitability; a more prosaic explanation, but one that’s just as difficult to quantify within the confines of a P&L statement. Paul Moran did make the point that the recent first-quarter update referenced profits growing year on year, but not cash flows. At the March full-year, those flows had been underpinned by an adjusted operating cash conversion rate of 77 per cent, although that was down from 95 per cent in the previous year. Jamie Pike, chairman of RPC, complained that the group’s ability to pursue acquisitions is being hampered by “pressure on the market valuation and differing investor views on the appropriate level of leverage”. In other words, the Northern Trust critique has gained wider support. If deals dry to a trickle, Mr Moran expects that a negative free cash flow trend could be apparent in the group first-half returns published in November. That would follow on from a 4 per cent decline in free cash flow at the year-end, although it’s conceivable that ongoing plans to hive off non-core businesses could eventually muddy the waters in this regard.“ IC View The IC was told that management at RPC wasn’t prepared to comment on the speculation, which will obviously do nothing to quash it, but we would have thought that any interest on the M&A front would have come from an industry peer, at least an entity with a complementary business model and sufficient scale to pursue a tie-up – Australian Securities Exchange (ASX)-listed Amcor (ASX:AMC) readily springs to mind. You could always take a speculative option if you think RPC will fall victim to industry-wide consolidation, but the current share price is around 84 per cent in advance of the broker’s fair value estimate of 430p a share, based on 10 times its free cash flow estimate for 2019.”
jonwig: Not a holder, but price now looks interesting! here's the FT Opening Quote e-mail: A regulatory crackdown on single-use plastics, in the UK and in Europe, has raised many questions. Last Wednesday, with much of the City on its half-term holiday, the main one was: “If straws have to be made out of paper from now on, can you still get bendy ones - or will they just go soggy?” A very good question - and one that stumped this commentator. But, today, with FTSE 250 packaging group RPC reporting full-year results, it’s more a case of: will its profits and revenues hold up… or will they just go soggy? And, this morning, RPC has not been stumped. It has reported a 36 per cent rise in revenues, driven by acquisitions, which led to a commensurate 36 per cent rise in adjusted pre-tax profit, to £389m. Its most recent deal was the €75m acquisition of Nordfolien, which completed after the year end. On a statutory basis, pre-tax profit actually doubled to £317m - reflecting a “significant reduction in adjusting items” in the past year. But revenues also grew organically, by 2.8 per cent, continuing RPC’s recent record of increasing its sales by around 3 per cent a year, excluding acquisitions. In China, organic revenue growth was 26 per cent, helping to lift revenues outside Europe to £831m, from £384m previously - now 22 per cent of the group total. Cash flow generation was “robust”, too, with net cash flows from operating activities up 40 per cent to £386.7m. But free cash flow was lower than the prior year, at £229m, due to the “non-repeatability of working capital related cash synergies”. Much of this improvement had been expected after a trading update in late March said the positive trading trends outlined in its third quarter update had 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”. Back then, RPC had also flagged that profitability and cash generation - before and after exceptional items - were set to meet management expectations. However, that was not enough to reverse a 20 per cent fall in RPC’s share price since the end of September, after governments and regulators stepped up their fight against plastic waste. As one of Europe’s largest manufacturers of plastic packaging, the market has expected RPC’s businesses to be directly affected. Recent EU proposals target single-use plastics, such as cutlery and straws, and calls for all plastic bottles to be recycled by 2025. So, today, it is the outlook that investors will be drinking in, not last year’s performance. RPC chief executive Pim Vervaat insisted the group was well placed to benefit from opportunities driven by the recent sustainability trends, and from e-commerce. He said RPC was still expecting “through the cycle underlying organic growth” to be ahead of GDP growth, and adjusted operating profit in the core businesses to improve - but more slowly. RPC expects it be about about £50m higher, but only by the financial year ending March 2021. Some analysts agree. Hargreaves Lansdown reckons that, longer term, RPC’s focus on innovative design should mean it is well placed to weather a more difficult plastics environment. Tougher regulation may even improve its position relative to smaller competitors.
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