Business acquistions boost RPC H1 revenue

Rigid plastic packaging supplier RPC Group said its revenue grew in the first half of 2014, courtesy of business acquisitions and satisfying progress in its existing programmes.

Revenue in the six months to September rose 12% to £588.9m, with profit before tax increasing from £30.1m to £34.9m, while net profit went from £6m to £20.2m.

The firm said its 'Fitter for the Future' business optimisation was nearing completion with three non-core businesses disposed of in the period.

"The performance in the first half year has been encouraging with good growth in selected areas, the progression of the Fitter for the Future programme and the contribution from recent successful acquisitions,” said group chief executive Pim Vervaat.

“The Vision 2020 Focused Growth Strategy is making good progress with the proposed acquisition of Promens providing an attractive opportunity to extend and consolidate the Group's leading market positions, creating shareholder value.”

Boosted by business acquisitions, adjusted operating profit rose from £47.1m to £60.9m, while adjusted earnings per share rose 19% to 22.8p and interim dividend rose from 4.5p to 5p.

The firm said the second six months of the year had started steadily and remained optimistic of making a recovery in Europe.

“The second half of the year has started satisfactorily and the group remains well placed to benefit from an economic recovery in Europe," Vervaat added.