RPC ups dividend as profits improve

Sales were down 6% to £719.9m (€860.7m) but adjusted operating profit improved by 15% to £40.9m (€48.9m). As a result, PRC has increased it dividend by 13%.

“From a volume perspective the past 12 months have been difficult,” said Ron Marsh, RPC CEO. “The total tonnage we’ve converted was down by 4%. This was mainly due to destocking, especially in the cosmetics sector, but volumes have picked up recently.

“Also, our major customers are interested in developing new pack designs, which will come to market within the next 18 months to two years.”

Increases in polymer prices have “caused some pain” admitted Marsh, but he believes that prices in Europe will fall, in line with movements in Asia and the US. “Prices are coming down,” he told PRW.

The outlook for the coming 12 months is generally solid, added Marsh. “In the UK we’ve seen 2% growth – things are doing quite nicely. There are grounds for encouragement, especially with the prospect of a return to growth in Germany.”

The last 12 months have seen a range of plant closures across Europe as RPC has refocused its activities around key manufacturing location. “And all the closures were completed without disruption to our customers,” Marsh explained, “and future organic growth will now benefit all our remaining operations, but we’re also keen to identify opportunities for growth through acquisition.

“We’re optimistic and well placed,” he said. “We’ve reduced costs and improved margins.”