"Our vision 2020 strategy is alive and kicking," proclaimed RPC's (RPC) chief executive Pim Vervaat. Against a backdrop of high polymer prices and economic uncertainty in Europe, the plastic packaging specialist's bid to expand through investment and acquisitions delivered adjusted operating profit growth of 36 per cent in the six months to September.
That success was mainly driven by top-line growth, most of which came courtesy of the recent acquisitions of Dutch blow-moulder PET Power and Iceland-based Promens. But the group's efforts to boost organic growth by investing in its product range also saw like-for-like sales rise 4 per cent. Demand was particularly robust for packaging solutions in personal care and food. RPC's Superlock food containers now offer technology enabling food to be kept at ambient temperatures. Such innovations have gone down a storm in Nordic regions.
The acquisitions of Promens and Ace contributed towards a near four-fold jump in sales at the smaller non-packaging unit. Of these new additions, Promens has been stealing the headlines. Potential for further efficiencies led management to upgrade its estimate of annual cost synergies by €20m (£14m) to €50m, as it rationalises the production network and transfers volumes to other facilities.
Broker Panmure Gordon upgraded its adjusted EPS forecasts for the year to March 2016 by 2 per cent to 47.2p.
RPC (RPC) | ||||
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ORD PRICE: | 783p | MARKET VALUE: | £2bn | |
TOUCH: | 782.5-783.5p | 12-MONTH HIGH: | 783p | LOW: 467p |
DIVIDEND YIELD: | 2.1% | PE RATIO: | 39 | |
NET ASSET VALUE: | 236p* | NET DEBT: | 74% |
Half-yearto 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2014 | 589 | 34.9 | 11.8 | 4.4 |
2015 | 800 | 40.5 | 11.2 | 5.2 |
% change | +36 | +16 | -5 | +18 |
Ex-div: 28 Dec Payment: 26 Jan *Includes intangible assets of £565m, or 223p a share |