RPC Group Plc (LON: RPC), a leading global plastic products design and engineering company, today announced its half year results for the six months ended 30 September 2018.
Financial highlights1:
· Revenue growth of 7% to £1,892m reflecting continued organic growth of 3.2%, the contribution from acquisitions, pass-through of higher polymer prices partially offset by foreign exchange movements
· Adjusted operating profit increase of 3% to £214.3m demonstrating good organic profit growth despite polymer headwind
· Statutory profit after tax, from continuing operations of £119.1m up 1%, with a 2% improvement in statutory basic EPS to 28.9p
· Robust adjusted operating cash conversion achieving 89% whilst investing in growth projects
· Interim dividend of 8.1p up 4% representing the 26th year of consecutive growth
Strategic highlights:
· Significant organic growth in China and US due to higher added value products
· Investment in the Group’s sustainability proposition with the acquisition of UK based recycler PLASgran positioning RPC as one of Europe’s leading recyclers
· Selective consolidation of European markets continued with the Nordfolien acquisition
· Finalised the disposal of Letica Foodservice whilst continuing with the disposal of the other non-core businesses
· Returned £99m to shareholders through dividend payments and the completion of the inaugural share buyback scheme
Pim Vervaat, RPC Group Chief Executive, said:
“I am pleased with the trading performance over the last six months. We achieved good profitable organic growth with a robust cash flow performance whilst investing for future higher added value growth. I am excited by the many opportunities to further develop both organically and through acquisitions. With RPC’s unique global network of design and engineering centres, the Group is well placed to benefit from the development opportunities driven by globalisation and recent sustainability and e-commerce trends. Looking ahead we continue to target through the cycle organic growth ahead of GDP.”
