RPC Group sees H1 revenues significantly ahead, lifted by acquisitions

Plastic product design and engineering company RPC Group said on Thursday that it expects first-half revenues and adjusted operating profit to be significantly ahead of the previous year.

In a pre-close trading statement for 1 April to 30 September, the company said revenue has benefited from the contribution of acquisitions and continued organic growth, while operating profit will be up on the realisation of synergies, the part reversal of last year’s polymer price headwind and foreign exchange benefits.

RPC said the organisational integration of GCS has been completed and its overall trading is ahead of previous expectations.

Meanwhile, the acquisition of British Polythene Industries was completed in August and has been integrated into RPC as a sixth stand-alone division. Initial trading has been encouraging, the company said, adding that the overall acquisition related cost synergies are currently being reviewed to assess potential further upside.

RPC said its financial position remains strong, with good cash flow development in the first half and significant headroom under its debt facilities.

Chief executive Pim Vervaat said: “Our first half performance has been encouraging. We are delighted with our acquisition of BPI and we can see real potential for this business as part of the group. Looking forward, further opportunities to grow and enhance RPC's overall position are actively being pursued in line with our Vision 2020 strategy."