Rpc Share Discussion Threads

[bouleversee] 04/5/2018 09:59

But is any of their stuff likely to end up in sewage or on beaches etc. as opposed to the dump, hopefully in the recycling rubbish? I thought RPC was particularly good at recycling themselves. Whatever, I'm not convinced that the share price is due to anti-plastics sentiment. I must check when their results are due and how heavily they are being shorted. A big increase in dividend might achieve wonders; after all that buying back there will be fewer shares getting it. However, they must have spent a lot on the buy-backs. I can never get my head round the point of them. Hasn't achieved anything so far, anyway.

[jw121] 04/5/2018 07:54

If you look at the legislation which has been agreed then I can't see how any of it will have an impact on producers. Agree company PR is poor but i think the share price issue relates more to current financial concerns (although i personally believe these are unfounded)rather than the current anti plastics sentiment.

[martinc] 04/5/2018 07:21

And even the large durable items have environmental problems.. Just not identical to the bag and wet wipe problem

[jeffian] 04/5/2018 01:23

I'm not sure that's true, bouleversee. For example, I think they've designed/patented the Nespresso capsules (or some similar coffee machine) which means every shot of coffee requires its own plastic capsule. They also make specialised containers for things like Jean Paul Gaultier perfumes. Whether these are 'large, solid and durable' is a matter of conjecture. Once they're used, they have to be disposed of. It's not a PR problem - they just have to deal with the issue of sustainability.

[bouleversee] 03/5/2018 20:17

I thought it had been established that the stuff RPC makes (large, solid and durable) isn't the same stuff that causes the environmental problems and also that they were very competent as regards recycling. Perhaps they need better PR. When are the next results out?

[jeffian] 03/5/2018 19:01

I think that's right. Every time there's another story about some supermarket giving up plastic packaging it sets back the share price I remain invested here (and I've built quite a substantial holding) because in the short to medium term I believe the figures will speak for themselves despite what the politicians say. In the longer term, I feel that the future is going to be all about recycling and biodegradability (is that a word?!) and RPC are well placed to invest and develop their products appropriately. I don't believe that modern wholesale, retail and distribution systems can survive without plastic. I can't see those using bottles reverting to glass with all the hassle of recovery, re-washing, infections, breakages etc and anything requiring freshness simply has to be kept in a sealed container of some sort.

[redartbmud] 03/5/2018 18:40

Anti-plastics sentiment?

[bouleversee] 03/5/2018 18:22

Nevertheless, despite all the buybacks the share price is in the Doldrums. Wny?

[jw121] 18/4/2018 17:10

I've had another read through the latest NT report from July last year;

hxxps://europe.aviatelive.com/wp-content/uploads/sites/9/2017/07/RPC-Sell-12-JUL-2017.pdf

The more you read it the more it appears to be one giant tyre kicking exercise. They start off trashing the plastic packaging industry (this was before Attenborough had his say) and then move on to capex, free cash flow and finally organic growth. I would have given more weight to their opinions if they had criticised one area of the business but the way they have gone about it seems to be, in my opinion, an attack just to drive down the share price. I look forward to seeing the results when they are published in June and my view is that they will put to rest a lot, but not all, of the NT points. The fact that the board were happy to sign off on another acquisition at the end of the financial year, albeit much smaller than some of the more recent ones, suggests that they have confidence that the vision 2020 strategy is delivering strong performance for the business

[bouleversee] 03/4/2018 11:28

I wouldn't bank on it.

[dr_smith] 03/4/2018 11:02

Fair comment, but time is a precious commoddity and I can only spread myself so thin.
I would expect their PR person to read this BB board.
They shouldn't have to be led.

[bouleversee] 03/4/2018 10:05

So have you told them what you think?

[dr_smith] 03/4/2018 09:57

Following my rant above, I see today the post on SmithDS thread by mirandaj lonking to this:


Extract:
===================
Following recent trials, we have announced that our paper mill in Kent has the capacity to recycle up to 2.5 billion coffee cups – that’s the amount we use in the UK every year.
....
That’s why we’re working with the coffee cup supply chain, policy makers, the recycling industry, and coffee lovers across the UK to build a sustainable, long-term recycling solution.
===============
That's what I mean about being pro-active - what RPC should be doing on similar lines for their own niche - being pro-active and shouting about it rather than re-active, blah blah in line with a random dead line in 3 years..2020 vison. :-)

[swanseayellow] 29/3/2018 13:18

Well folks, I’m off , having believed in this company for five years I can’t afford keep the faith, so lm of to join the party at Bushveld Minerals

[bouleversee] 29/3/2018 12:42

All companies seem to say "in line with expectations" without saying/reminding what they were. Drives me potty.

If the share price stays low, it will attract predators. I can do without yet another takeover.

[dr_smith] 29/3/2018 10:43

I hate TA's (implicitly retrospective) that are vague on outlook making mere generic comments.

I note "The positive trading trends outlined in the third quarter update have continued, and revenue for the full year is expected to have grown significantly versus last year"
It doesn't say "revenue AND PROFITS for the full year is expected to have grown significantly versus last year".
Well.. with acquisitions of course the turnover is higher - but one would hope that that turover was done with a commensurate profit margin to make the latter statement.

And what are "management expectations".
AFAIK, that means "Vision 2020", but most comments are retrospective with no targets given.
Looking back to last full results:

..on page 15 only references retrospective progress.
The best I can find is:
hxxps://www.rpc-group.com/corporate/investment-proposition/strategy
Given that the Vision 2020 was started in 2013, and the political/environmental landscape is now so much hotter on "green" topics, I would expect more substantial positive/bullish comment and outlook than the generic bland "UK Government environment plan and EU plastics strategy" statement in todays TA rns.

"The scheme is subject to consultation and RPC looks forward to positive discussions with the Government as to the details of the final scheme. "

Given the significant change any return scheme can have, RPC could be saying something pro-active, say "We will be presenting our own research to government as to ways plastic recycling can be effectively implemented and progressed, using our speciailst knowledge and capabilities".

...rather than a re-active "RPC looks forward to positive discussions with the Government as to the details of the final scheme."

I get no sense of enthusiasm or positivity, with only backward looking statements, I feel as if it is "we will do a bit better next year, but don't bother us until 2020"

Maybe I have it wrong, being too harsh, but with the recycle topic so hot, and TA today the RPC PR folks have missed out on a massive opportunity to stand up and be counted for a positive looking future.

...and relax....

[bouleversee] 29/3/2018 10:28

I thought it had been established that RPC doesn't make the type of plastic stuff that is causing the problems and investors would know that so I can't think that is what is behind the low share price We should be buying more.

[jeffian] 29/3/2018 09:33

Well they've certainly tried to address the issue of plastic waste but I'm not sure it'll make much difference whilst it remains on the news every night. Whenever there's perceived to be a problem, the market tends to lump together all companies within a sector whether they're actually affected or not.

#1733,
I think the proof of that particular pudding will be in the cashflow figures. They've tried to reassure on that point ("Profitability and cash generation (both before and after exceptional items) are expected to be in-line with management expectations.") so the cash is either there, or it isn't. I doubt the issue will be completely resolved unless and until they have a period without any claimed 'exceptional' costs at all.

[cheshire pete] 29/3/2018 08:41

Let's hope so jw121. Can't see anything in TS not to like. Have spent £83.2m of £100m allocated for share buy back. Have seen it said that share price can be in doldrums during buy back before moving up once completed. Time will tell. share price still a lot lower than broker forecasts.

[18bt] 29/3/2018 08:03

March 2019 PER of 10.3 and div yield of 3.8% looks good value IMHO

[jw121] 29/3/2018 07:39

Having completed a a whole trading year without any major acquisitions and profitability remaining in line with expectations, does this prove those who were claiming that they were being used to hide poor performance wrong?

[redartbmud] 28/3/2018 18:18

jeff

I agree with what you say. The market is fragmented and their share is small.
They need to work out how to produce plastics that are fit for purpose, but have that cheap and effective biodegradable quality. Recycling systems are poor and disjointed. There is no will, within the key players, to improve them. Make big noises but do little. We are in a consumer led society that operates on a throw away philosophy. Too many think that it is someone else's problem, not theirs.

[jeffian] 28/3/2018 17:52

red,

Thanks largely to David Attenborough's 'Blue Planet' programme this has become an emotional issue with the public - and therefore politicians - and rightly so in the sense that something must be done about the way we deal with all our waste but the reality is that plastics are so fundamental to our lives now that they will never be eradicated entirely. RPC's speciality is the design and manufacture of bespoke and branded containers and, despite their many acquisitions, in this fragmented industry they still have a relatively small market share so if there is a move away from plastic, the trick for RPC is to make sure that they retain a good share of what remains.

[redartbmud] 28/3/2018 17:20

jeff

No chance. I was listening to the Iceland CEO on the radio today. His aim is to remove all plastic from the company ASAP. He is one of too many who are on the bandwagon.

[jeffian] 28/3/2018 17:15

Year end trading update tomorrow. Be interesting to see if they can address the relentless downward pressure from the 'anti-plastic' movement which currently dominates the news.