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Pre Close Trading Statement

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RNS Number : 9468A
RPC Group PLC
30 March 2017
 

30 March 2017

 

 

RPC Group Plc

 

Pre Close Trading Statement

 

RPC Group Plc ("RPC" or the "Group"), a leading plastic products design and engineering company for both packaging and selected non-packaging markets, today issues a pre close trading statement for the financial year ending 31 March 2017 ahead of its full year results announcement, due to be published on 7 June 2017.

 

 

Trading performance

 

Revenues for the financial year 2016/2017 are anticipated to be significantly ahead of last year, reflecting contributions from acquisitions and continued underlying organic growth. The Group's overall performance has been encouraging with the adjusted operating profit for the year ahead of management expectations.

 

The Group's financial position remains robust with good cash flow development. The net proceeds of the rights issue announced on 9 February 2017 have been received and following completion of the Letica acquisition the Group retains significant headroom under its debt facilities, which include a new US$750 million multi-currency term loan facility.

 

 

Acquisitions and integration update

 

The larger acquisitions of GCS (completed March 2016) and BPI (completed August 2016) have integrated well and are performing ahead of expectations. Key management has been retained with GCS operating as a Strategic Business Unit ("SBU") in the Bramlage division and BPI as a stand-alone division.

 

With respect to the other previously announced acquisitions, the following update can be given:  

 

·     the acquisition of ESE completed on 31 January and accordingly is anticipated to make a contribution to the 2016/17 financial year. The company is operating as a stand-alone SBU in the Promens division and early purchasing synergies have already been realised;

·     the acquisition of Letica Group completed on the 10 March. With an EBITDA of US$67m realised in the calendar year 2016, the upfront consideration of US$490m paid for the business represents an 7.3x EBITDA multiple. Letica management are being retained and it will operate as a stand-alone SBU within the Superfos Division.  The limited Integration work required is already under way;

·     the acquisition of Astrapak Limited is expected to be completed in June with the CEO and the executive management team being retained.

 

 

Commenting on the performance, Pim Vervaat, RPC's Chief Executive, said:

 

"I am pleased with the Group's trading performance during the year and the successful integration of the acquired businesses. The board will continue to implement the Vision 2020 focused growth strategy, in which leading design and engineering capabilities create value in chosen market segments. At the same time the Group is looking to grow selectively in a consolidating industry whilst further enhancing its strategic buying position."

 

 

 

For further information:

 

RPC Group Plc:

+44 (0)1933 410064

Pim Vervaat, Chief Executive


Simon Kesterton, Group Finance Director




FTI Consulting:

+44 (0)20 3727 1340

Richard Mountain


Nick Hasell


 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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