Rpc Share Discussion Threads

[dozey3] 08/6/2017 08:06

A few months ago there was a very negative article about RPC,the sort that usually follows a shorting excercise. Could be that today's sellers are in the funds business, and selling shares owned by clients in order to help the shorters. Of course, this is pure speculation, and I am not suggesting such skulduggery could exist in our highly regulated market, any such sales may be fortuitous.

[fez77] 07/6/2017 22:33

If this doesn't bounce back tomorrow then I'm going to renounce all worldly goods and become a Trappist Monk.

[phillis] 07/6/2017 22:30

too much "adjustment" and not enough cash conversion

[liam1om] 07/6/2017 20:03

Late RNS's Directors buying in today, should see a bounce back tomorrow.

[carpadium] 07/6/2017 19:29

Can't recall seeing any daily movement like RPC's today. Opened top riser ADVFN's morning bulletin, finshed second FTSE 250 faller. After very reasonable finals mystery to me, daily trades do not appear responsible for such movement.
Anyone with any theories?

[alastair33uk] 07/6/2017 16:47

The moral of the story is to never take anything for granted. Looks like we've got a rough ride ahead of us.

[huangxq2] 07/6/2017 16:34

I do understand neither.

I thought the annual report result were quite good.

Two directors purchased some shares today taking advantage of today's price drop.

[swedeee] 07/6/2017 16:17

bloody hell what is going on!

[wobaguk] 07/6/2017 15:12

Jeffian if you meant my comment, I wasnt really referring to RPC damaging news specifically rather than market wide negativity from bad news. They say a rising tide raises all ships. The reverse is also often true.

[jeffian] 07/6/2017 14:58

I don't understand the comments above about Brexit and potential damage to trade with Europe. Around 77% of RPC's business is in Europe, most (if not all?) via its European subsidiaries from factories spread throughout the continent. Why would tariffs come into it?



Principal Subsidiaries

RPC Bebo C¢ R S.R.O. (Czech Republic); RPC Bebo Nederland B.V. (Netherlands); RPC Bebo Plastik GmbH (Germany); RPC Bebo Polska Sp. z.o.o.; RPC Bramlage-Wiko USA Inc.; RPC Cobelplast Montonate S.R.L. (Italy); RPC Cobelplast N.V. (Belgium); RPC Containers Limited; RPC Envases S.A. (Spain); RPC Formatec GmbH (Germany); RPC Packaging Holdings B.V. (Netherlands); RPC Packaging Holdings Limited; RPC Packaging Holdings US Inc.; RPC Tedeco-Gizeh (UK) Limited; RPC Tedeco-Gizeh GmbH (Germany); RPC Tedeco-Gizeh Kft (Hungary); RPC Tedeco-Gizeh Polska Sp. z.o.o.; RPC Tedeco-Gizeh Romania S.R.L.; RPC Tedeco-Gizeh S.A.S. (France); RPC Tedeco-Gizeh Troyes SASU (France); TW Packaging Polska Sp. z.o.o.

[vulgaris] 07/6/2017 14:51

Over 6 m shares so far traded today. Very high for this beast....

[huntie2] 07/6/2017 14:41

My top up at 813 doesn't seem so clever, now......

[affemoose] 07/6/2017 14:33

On the bright side for you lot, my stop loss is usually the bottom, they nearly always go up afterwards

[brain smiley] 07/6/2017 14:33

Management again didn't address the concerns of the bears...down it goes :(

[alastair33uk] 07/6/2017 14:31

This is completely beyond me... where do you guys see the share price in 3 months?

[affemoose] 07/6/2017 13:53

Good write up on Hargreaves Lansdown.

hxxp://www.hl.co.uk/shares/share-research/201706/rpc-group-profits-ahead-of-expectations,-dividend-grows-50

[squidsgone] 07/6/2017 13:39

Anyone else find the sell-off in the few days prior to public release of the results a little bit suspicious?

[phillis] 07/6/2017 12:34

Adjusted EBITDA GBP441 mill

make of that what you will/can

" Exceptional items are 'one time' costs or credits which include acquisition costs, costs of business integration and investments to extract synergies, restructuring and closure costs including related asset impairments and losses during the closure period, gains or losses on the disposal of businesses and property, remuneration charged on deferred consideration and one-off tax items arising, and any other gains or losses, which, in the management's judgement, because of their nature, size or infrequency could distort an assessment of underlying business performance.

Other non-underlying items include the amortisation of acquired intangible assets, the fair value changes of unhedged derivatives, the unwinding of the discount on deferred and contingent consideration, including related tax and foreign exchange impacts.

Exceptional and other non-underlying items for the year charged against operating profit amounted to GBP116.2m (2016: GBP79.1m) which included costs relating to bringing new businesses into the Group of GBP84.2m (2016: GBP68.2m). These costs are the result of acquisitions and can be broken down into four key categories.

Acquisition transaction costs of GBP19m which are the direct external costs associated with making an acquisition. They are primarily financial, legal, tax, environmental, anti-bribery and corruption due diligence plus representation and warranty insurance and other advisor fees. They comprised Letica GBP7m, BPI GBP5m, ESE GBP3m and Plastiape GBP1m, with GBP3m for other acquisitions made or considered during the year. This represents 1.6% of the enterprise value of acquisitions made during the year.

Integration costs are the one-time costs incurred to deliver synergies from the acquired businesses; the Group substantially completed the integration of the Promens sites during the year, and the total cost of the combined GCS, BPI and Promens integration programmes are now estimated at EUR190m with associated cash costs of EUR120m. The benefits associated with the overall optimisation of the cost base are projected to be at least EUR105m which is EUR5m better than the previous estimate. During the current financial year EUR77m (GBP67m) of costs had been incurred. During prior financial periods EUR83m (GBP63m) had been expensed leaving approximately EUR30m (GBP26m) to follow with completion expected during 2017/18. The GBP67m is predominately accounted for by integration costs, including severance and redundancy costs of GBP22m, asset impairments at closed sites of GBP11m, and other costs relating to the closure and transfer of businesses of GBP33m.

The realisation of synergies from acquired business by integrating their sites into the Group's existing operations where overlaps occur or opportunities to combine resources exist, including the elimination of duplicate offices and functions, is an important part of the Group's acquisition strategy. Less than 25% of the RPC sites, including those of the newly acquired businesses, were affected by these integration activities during the year, with most of the exceptional costs attributable to only those divisions into which the new businesses were integrated (principally RPC Bramlage into which most of the GCS sites have been integrated and RPC Promens) and RPC bpi. These integration activities are normally carried out as soon as practical from acquiring the business and are normally completed within 12 to 24 months depending on the complexity of the acquired business and the opportunity for synergies with the existing RPC businesses.

Other restructuring, closure costs, impairments and other losses of GBP6m include other integration costs which are not part of the Promens, GCS and BPI programme, and other restructuring costs including the refocusing of a Bebo division business in the Netherlands. The other impairment losses on property, plant and equipment of GBP1m relate to assets destroyed in a fire at a site in Belgium, and the other exceptional costs of GBP2m comprise a number of smaller items, the largest one being the costs associated with the start-up in Brazil.

Remuneration and deferred consideration charges arise when there is an earn-out as part of an acquisition and the selling owner / management are retained within the business or there is a change in the expected level of payment. During this financial year there was a remuneration charge of GBP12m and a credit of GBP23m, the latter driven by the assumed payout in relation to the acquisition of Ace being lowered from 75% to 50%. The Ace arrangement is a four year earn-out which requires a four year EBITDA compound annual growth rate of 15.6% to pay out in full. The Ace charge amounted to GBP8m and the Letica earn-out was GBP3m. In respect to Letica a 100% payout would mean a charge of GBP4.4m going forward per month. Other earn-outs were immaterial at GBP1m

[affemoose] 07/6/2017 12:17

Not happy with this share price maybe has something to do with accounting, there is doubt out there that they use aggressive accounting practices.

Will cash my eyes over the results in detail at some point. Really interested in cash.

[wobaguk] 07/6/2017 11:38

I just went to abbreviate your name and was amused at the acronym. I don't think it implies anything, hence 'unfortunate' rather than 'telling'

[evil_doctor_facilier] 07/6/2017 11:18

Can i also inquire how you travel my name from a Walt Disney character from a children's classic 'The princess and the frog' into alluding that i represent some far right political party?

That's totally bizarre!

[cellibomb] 07/6/2017 11:14

Pretty sure the stock was up 3.8% when I checked my account this morning and then suddenly turned sour.

I don't buy the fact that people are selling based on the statement of further possible acquisitions as this is nothing new (it was mentioned in the last trading statement).

Dividend up 50% to me is a good enough reason to believe that business is performing well... (IMO)

[evil_doctor_facilier] 07/6/2017 11:10

The fact is whatever happens in the brexit negations RPC will continue to do well in their market if it makes good products

For example let's set out what many call the worse case scenario,that being WTO tariffs of up to 10% into the EU.
Has the company in the past when the £/E rate been 10% higher seen a huge collapse of sales into the EU? I would suggest not, even though it would in reality the same as any 10% tariff now.
Also add in the lower pound and what actual significant difference does it make?

Is it not the case that the rigid plastics markets world wide is worth over 175 billion the largest market being Asia and not the EU?

Today RPC announced sales outside Europe increased by 76% to £384m ...
The lower pound has already flattered their results and so made exports cheaper, hence generating additional sales.

So therefor it could well be set out this company has done rather well so far from brexit,but no one is banging that on their chest are they?