Join our community of smart investors

RPC revenues soar

RPC is benefiting from Brexit as well as its recent acquisitions.
July 13, 2016

A combination of strong organic growth and acquisitions resulted in a significant rise in revenues at plastic packaging group RPC (RPC) in the three months to the end of June. Meanwhile, operating profits are ahead of management's expectations thanks to acquisition synergies, lower input prices and a better than anticipated performance by Global Closure Systems (GCS), which was acquired in March.

IC TIP: Buy at 802p

While RPC's shares fell 15 per cent in the days after the EU referendum result, the initial impact on trading has actually been positive as 75 per cent of the company's revenue is generated outside the UK, meaning reported profits will benefit from sterling's weakness. RPC is also in the process of buying British Polythene Industries (BPI), whose addition will be a "significant step in realising our 2020 focused growth strategy", according to chief executive Pim Vervaat.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in