RPC revenues 'significantly' ahead of last year

published 27 January 2012

Plastic packaging firm RPC has revealed that revenues in the quarter ended December 31st were significantly ahead of the same period the previous year.

The increase is the result of the inclusion of the Superfos business and increasing like-for-like revenues.

Overall like-for-like sales volumes were at a similar level to last year as the growth in higher added value packaging was offset by the continuous light weighting trend and lower activity levels in the surface coatings and vending cup markets, which were affected by the macro-economic slowdown, the firm said.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

The financial position remains "robust", with satisfactory cash flow development in the quarter and significant headroom under the group's debt facilities.

The firm is on course to realise £9m of synergies in the financial year 2011/12 and steady state synergies in the range of £15m to £25m.

RPC also announced its intention to withdraw from the loss-making market segments of automotive components in Germany and vending cups in Western Europe (excluding the UK).

Ron Marsh, RPC's Chief Executive, said: "The group's overall performance for the period was in line with our expectations. During the period the integration of the Superfos business has been largely completed with the realisation of the synergies well on track. Looking forward, I am confident that growth in higher added value products will continue and that RPC is on track to deliver further progress despite the current macro-economic uncertainties."