RPC, a supplier of rigid plastic packaging, has said that revenue for the fourth quarter is expected to be well ahead of last year due to the inclusion of the Superfos business and higher like-for-like revenues.
However, margins have been affected as a result of polymer index prices rising around 20% since the start of the year, although the operating profit for the fourth quarter and full year is set to remain within management's expectations.
"The financial position remains robust with a good cash flow development in the fourth quarter and significant headroom under the group's debt facilities," the firm said.
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 company added that the previously announced withdrawal from the loss-making market segments of automotive components in Germany and vending cups in mainland Europe looks set to cost about £15m. The proceeds from asset sales, together with the release of working capital, are expected to be more than sufficient to fund any redundancy costs.
Shares were down 1.89% at 373.8p in early trading on Thursday.
NR
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
