DirectorsTalk Interviews

Tag: RPC

  • RPC Group Plc Achieved good profitable organic growth with a robust cash flow

    RPC Group Plc Achieved good profitable organic growth with a robust cash flow

    RPC Group Plc (LON: RPC), a leading global plastic products design and engineering company, today announced its half year results for the six months ended 30 September 2018.

    Financial highlights1:

    · Revenue growth of 7% to £1,892m reflecting continued organic growth of 3.2%, the contribution from acquisitions, pass-through of higher polymer prices partially offset by foreign exchange movements

    · Adjusted operating profit increase of 3% to £214.3m demonstrating good organic profit growth despite polymer headwind

    · Statutory profit after tax, from continuing operations of £119.1m up 1%, with a 2% improvement in statutory basic EPS to 28.9p

    · Robust adjusted operating cash conversion achieving 89% whilst investing in growth projects

    · Interim dividend of 8.1p up 4% representing the 26th year of consecutive growth

    Strategic highlights:

    · Significant organic growth in China and US due to higher added value products

    · Investment in the Group’s sustainability proposition with the acquisition of UK based recycler PLASgran positioning RPC as one of Europe’s leading recyclers

    · Selective consolidation of European markets continued with the Nordfolien acquisition

    · Finalised the disposal of Letica Foodservice whilst continuing with the disposal of the other non-core businesses

    · Returned £99m to shareholders through dividend payments and the completion of the inaugural share buyback scheme

    Pim Vervaat, RPC Group Chief Executive, said:

    “I am pleased with the trading performance over the last six months. We achieved good profitable organic growth with a robust cash flow performance whilst investing for future higher added value growth. I am excited by the many opportunities to further develop both organically and through acquisitions. With RPC’s unique global network of design and engineering centres, the Group is well placed to benefit from the development opportunities driven by globalisation and recent sustainability and e-commerce trends. Looking ahead we continue to target through the cycle organic growth ahead of GDP.”

  • RPC Group Plc Sale of Letica Foodservice for $95 million and Acquisition of PLASgran

    RPC Group Plc Sale of Letica Foodservice for $95 million and Acquisition of PLASgran

    RPC Group Plc (LON:RPC), a leading global plastic products design and engineering company, announced today an update in relation to the divestment of its non-core businesses and the recently completed acquisition of PLASgran, a leading UK rigid plastic recycling company.

    Sale of Letica Foodservice

    RPC has reached binding agreement with Graphic Packaging International LLC for the sale of the Foodservice business of Letica Corporation for a pre-tax cash free, debt free consideration of $95 million. The completion of the transaction is subject to regulatory approval in the United States.

    As a result of the sale of the Foodservice Business, RPC has reached agreement to settle the earn-out associated with the Group’s acquisition of Letica Corporation in March 2017. An amount of $7.5 million will be payable to the former shareholders of Letica upon the completion of the sale of the Foodservice Business. No further amounts will be charged to adjusting items in respect of the earn-out. The cash payment of $7.5m compares with the circa 20% (circa $29 million) earn-out settlement indicated in the previous technical guidance.

    Disposal of other non-core businesses

    Preparations for the sale of the spirits closures business at Bridge of Allan, Scotland, are complete and the business is being marketed to interested parties. Further updates on this process will be provided in due course. The preparations for the sale of the European injection moulding automotive business (comprising of operations at Zevenaar, The Netherlands, and at Rongu, Estonia) have started. It should be noted that there is a continuation of the significant under-performance at the operation in Zevenaar as a result of cost inefficiencies arising from last year’s new product launch.

    Acquisition of PLASgran

    On 13th August RPC acquired PLASgran Limited, for a cash free, debt free consideration of £34.5 million. Operating from facilities in Cambridgeshire, PLASgran is a leading UK recycler of rigid plastics and in the last financial year generated revenue of £27 million. The acquisition will complement and enhance the existing film recycling activities carried out by the RPC bpi Division, bringing additional annual capacity of almost 50,000 tonnes of rigid recycling alongside the Group’s existing flexible capacity, delivering a total recycling capacity in excess of 100,000 tonnes per annum. The expanded RPC bpi recycling business will serve the UK and Mainland European markets, with all management of PLASgran retained.