RPC Group revenues rise 'significantly' in face of polymer price swings
First-quarter revenues rose significantly at RPC Group compared to the same period last year but the plastics group has had to contend with fluctuating prices for polymers.
FTSE 250
19,391.30
17:09 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
General Industrials
6,848.65
17:10 19/04/24
RPC Group
792.60p
17:00 28/06/19
Polymer prices increased significantly in the quarter "due to the unprecedented number of forces majeure in the supplier base", which took some time to pass onto customers.
But FTSE 250 company added that prices have started to reduce as supply constraints ease.
As a result, trading remained in line with RPC's expectations as sales were lifted by earlier acquisitions and continued underlying like-for-like growth.
"Overall the start to the new financial year has been encouraging, certainly when taking into account the time lag in passing through higher polymer prices," said chief executive Pim Vervaat.
He added that the integration of the Promens, which was acquired in February, was "going well" with trading and the realisation of cost synergies both in line with expectations.
The financial position was said to remain robust, with good cash flow development in the quarter and significant headroom under current debt facilities.