Rigid plastics packaging specialist RPC (RPC) had some respite from polymer price and currency headwinds in the first half. A favourable translation impact from the euro was the main driver of the increase in revenues - 66 per cent of RPC's turnover is in the eurozone. And, unlike last year, the impact of polymer prices was neutral in the first half.
That helped drive a half-on-half increase of over £3m in adjusted operating profit although, on a year-on-year basis, operating profit was a shade lower at £46.6m, compared with £47m last year, as weakness persisted in continental European markets. Outlook comments suggest the picture there may be brightening, with second-half trading said to have started well. "I am cautiously optimistic that the environment is improving slightly," says chief executive Pim Vervaat.
In the meantime, expansion beyond Europe is a key part of RPC's new Vision 2020 strategy. There are plans to expand what is currently a small production facility in North Americas and management is looking at establishing production facilities in BRIC (Brazil, Russia, India and China) markets.
Broker JPMorgan Cazenove has maintained its full-year adjusted EPS forecast of 37.1p (34.8p in 2013), with 41.7p forecast for 2015.
RPC (RPC) | ||||
---|---|---|---|---|
ORD PRICE: | 502p | MARKET VALUE: | £835m | |
TOUCH: | 501.5p-502p | 12-MONTH HIGH: | 527p | LOW: 375p |
DIVIDEND YIELD: | 3% | PE RATIO: | 24 | |
NET ASSET VALUE: | 153p* | NET DEBT: | 65% |
Half-year to 30 Sep | Turnover (m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2012 | 484 | 29.2 | 12.9 | 4.30 |
2013 | 525 | 30.1 | 13.4 | 4.50 |
% change | +8 | +3 | +4 | +5 |
Ex-div: 18 Dec Payment: 24 Jan *Includes intangible assets of £98.6m, or 59p a share |