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.
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.
The numbers were boosted by the inclusion of six months of Superfos trading activity, a business which RPC acquired in February 2011.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Do you qualify for the Winter Fuel Payment if you live abroad?
The Winter Fuel Payment will be means tested for expats living in Europe, in line with the new rules impacting those in the UK. But a quirk in the system means not all countries are eligible.
By Katie Williams Published
-
What the Employment Rights Bill means for your job
New workplace reforms are set to give employees new rights to benefits and flexible working
By Marc Shoffman Published