RPC Group, a supplier of rigid plastic packaging, has generated first-quarter revenue on a similar level with that seen last year, boosted by growth in higher added value products.
However, activity levels in the Spanish and UK markets remain generally subdued, while capital expenditure continues to run above depreciation level as significant investments in growth areas are being made.
The firm's departure from mainland European vending cups and automotive components announced in January 2012 is progressing to plan and the closure of the Superfos plant in Runcorn and the associated transfer of the business to other sites was successfully completed.
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Polymer prices reached record levels in May before falling significantly in June, with further reductions occurring in July, the firm said.
Ron Marsh, RPC's Chief Executive Officer said: "It is encouraging to see that the operating profit level achieved in the first quarter is in line with our expectations despite the general macro-economic weakness and having not yet fully recovered the polymer price increases. With the growth in higher added value products set to continue, I am confident that RPC is well positioned to deliver on its strategy."
Operating performance beneitted from an improved sales mix and further Superfos synergies, although, as expected, gross margins were negatively affected by the time lag in passing through polymer price variations to the customer base, which is anticipated to reverse in the second quarter as selling prices adjust upwards and raw material costs fall.
The cash flow performance was "satisfactory" and the group's financial position has improved compared with the same period last year. Significant head room is available under the group's financing facilities, it said.
The share price rose 1.47% to 406.50p by 14:34.
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