Profits up at RPC but coffee cups down

Plastic packaging firm RPC saw profits boosted in the first half by increased sales and a successful acquisition.

Sales of £586.7m in the first half were 11% higher than the same period last year on a like-for-like basis.

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The firm has declared an interim dividend of 4.2p per share, a 24% increase on the previous year.

Earnings per share were 16.4p, up from 10.5p in the first half of 2010.

However, it warned that broader macro-economic weakness was causing a slowdown in demand across some of the group's product areas.

Segments such as paint containers, industrial products and vending cups had been affected, it said.

However, growth in higher added value products was anticipated to continue, the firm said

"With [around] 60% of the revenues related to the relatively resilient food markets and whilst enjoying strong market positions based on leading technological capabilities, the group is well positioned to weather any general economic downturn," said chairman Jamie Pike.

"The board remains confident that the stated aim of 20% ROCE by March 2014 will be achieved," he added.

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