RPC was established in 1991 following the management buyout of the plastic operations of Reedpack Ltd from SCA. Originally comprising five UK factories, the company today has over 55 operations in 19 countries and employs more than 11,100 people, with annual sales in excess of £1bn. It was listed on the London Stock Exchange in 1993 and entered the FTSE 250 in March 2011.

RPC is unique in offering products manufactured by the three main conversion processes – blow moulding, injection moulding and thermoforming, each technology producing different product characteristics that are suitable for specific packaging applications. It is structured along market and technological lines into six clusters which are aligned to these three processes.

Each cluster has on average seven manufacturing sites, operating across a wide geographical area for reasons of customer proximity, local market demand and manufacturing resource. Each plant is run autonomously.

This structure gives RPC a high degree of knowledge and expertise, along with the flexibility to deal with all types of sizes of businesses, and enables the company to deliver packaging solutions tailored each time to individual customer requirements, as well as the highest levels of service and support.


http://www.rpc-group.com/

Full year results

Financial highlights:

§ Revenue growth of 36% to £3,748m driven by acquisitions and organic growth of 2.8%
§ Adjusted operating profit increase of 38% to £425.0m with adjusted basic EPS up 16% to 72.0p
§ Statutory operating profit increase of 85% to £355.7m with statutory basic EPS up 66% to 61.6p
§ Robust cash generation with net cash flows from operating activities increase of 40% to £386.7m
§ RONOA expansion of 150 basis points to 27.2% with ROCE at 14.8% (2016/17: 15.2%)
§ Final dividend of 20.2p giving a full year dividend of 28.0p, representing an increase of 17% on last year and the 25th year of consecutive dividend growth

Strategic highlights:

§ Capital investment to deliver continuing pipeline of growth opportunities
§ Major European synergy programme substantially completed
§ Market position in flexibles strengthened by the Nordfolien acquisition (completed post year end)
§ Position outside Europe has been significantly enhanced
§ Active portfolio management: non-core businesses with a total revenue of £209m identified for disposal

Full year results for the year ended 31 March 2018


RPC Group Plc, a leading global plastic products design and engineering company, announces its results for the year ended 31 March 2018.

Financial highlights:


§ Revenue growth of 36% to £3,748m driven by acquisitions and organic growth of 2.8%

§ Adjusted operating profit increase of 38% to £425.0m with adjusted basic EPS up 16% to 72.0p

§ Statutory operating profit increase of 85% to £355.7m with statutory basic EPS up 66% to 61.6p

§ Robust cash generation with net cash flows from operating activities increase of 40% to £386.7m

§ RONOA expansion of 150 basis points to 27.2% with ROCE at 14.8% (2016/17: 15.2%)

§ Final dividend of 20.2p giving a full year dividend of 28.0p, representing an increase of 17% on last year and the 25th year of consecutive dividend growth

Strategic highlights:

§ Capital investment to deliver continuing pipeline of growth opportunities

§ Major European synergy programme substantially completed

§ Market position in flexibles strengthened by the Nordfolien acquisition (completed post year end)

§ Position outside Europe has been significantly enhanced

§ Active portfolio management: non-core businesses with a total revenue of £209m identified for disposal



Pim Vervaat, Chief Executive, said:

I am pleased with the progress made since launch of the Vision 2020 strategy five years ago with record profitability levels achieved this year on a significantly enlarged business whilst establishing a global footprint. I am excited by the many opportunities for the business to further develop both organically and through acquisitions. With our unique global network of design and engineering centres, the Group is well placed to benefit from the development opportunities driven by recent sustainability and e-commerce trends. We target through the cycle underlying organic growth ahead of GDP and to improve the adjusted operating profit of the core businesses, including the contribution from the recent Nordfolien acquisition, by at least £50m by the financial year ending March 2021. At the same time, within the overall capital allocation framework, the Group will continue to assess value-adding acquisition opportunities which meet our strict acquisition criteria. The new financial year has started in-line with management expectations.

more.....

And currently down 14%!

Plastics are very much out of favour at the moment. Also in March they mentioned a European Integration program, which might see them exiting the UK following the Brexit vote? And....the Tax Cuts and Jobs Act in the US has possibly skewed the figures a little?

Well I've taken a punt @658.

658 looking good right now.

I used to day-trade this stock constantly. Haven't looked it for years apart from one intra-day trade about 3 months ago which turned out ok but made me sweat a bit.

One to put back on my list once I've understood this EU directive thing

My RPC got closed at open for 35 points.

RPC shares fall on concerns over cash conversion.

FT "However, RPC’s chief executive Pim Vervaat said that the FTSE 250 group did not manufacture any of the products that will be restricted under a proposed EU directive.

The list also includes cotton bud sticks, beverage cups and drinks stirrers. By contrast, RPC supplies screw caps, bottle tops, asthma inhalers and coffee capsules, among other items."

You just wait, they will ban all of the rest of the plastic throwaway items soon enough, so not sure RPC are in the clear yet.

all good reasons to stay clear of that focused sector

War on plastic makes packaging firm RPC a target of hedge funds as they bet the firm's shares will drop further
Bets worth more than £240million have been placed against the FTSE 250 firm
More than 8 per cent of RPC’s £3billion stock is out on loan to short-sellers
By Jamie Nimmo For The Mail On Sunday
Published: 22:31, 7 July 2018 | Updated: 22:31, 7 July 2018

Hedge funds are cashing in on the war on plastics by shorting shares in packaging giant RPC.
Bets worth more than £240million have been placed against the FTSE 250 company, whose shares have come under pressure recently because of the clampdown on plastic packaging waste.
City firms can bet against firms by taking so-called ‘short positions’ – contracts on shares that allow investors to gamble that their value will fall.


Impact: City firms are shorting shares in RPC
Shorting is a risky tactic as investors can lose if the share price rises.
More than 8 per cent of RPC’s £3billion stock is out on loan to short-sellers, according to data from the Financial Conduct Authority.

MARKET REPORT: The war on plastic wipes £375m off packaging...

RPC shares: Check the latest price here
Firms that have taken out multi-million pound wagers against RPC include BlackRock and CapeView Capital, which also cashed in on Carillion’s demise.
No major short positions existed until October. But there has since been a sharp spike in activity, with RPC shares falling nearly 30 per cent.
In financial results last month the firm played down the impact of new EU rules on single-use plastics, saying it does not make any of those restricted under the proposal, such as straws or cutlery.
Analysts at investment bank Credit Suisse said: ‘The RPC share has been negatively impacted on concerns about the future of plastic packaging.’

Courtesy of the fool.

Plastic products design and engineering might not sound like the most exciting industry to be involved in, but this business has been highly profitable for mid-cap RPC Group (LSE: RPC). 

Over the past 10 years, it has been able to capitalise on the rising demand for innovative plastic products and packaging. It has expanded through a combination of both organic growth and bolt-on acquisitions, which have allowed it to access both new markets and new intellectual property. 

The group has proven itself to be remarkably adept at executing this strategy and over the past five years alone, net profit has risen 10-fold.

Shareholders have been handsomely rewarded following this growth. RPC’s dividend per share has increased from 6p in 2008 to 28p for this year. But dividend growth is only part of the story. Relentless profit growth has also translated into capital gains. Over the past decade, the stock has produced a total return of 24.9% for investors, turning a £1,000 investment into £11,000 today. 

I believe this is just the start of RPC’s growth story. 

Expanding around the world 

Over the past five years, it has been investing heavily to take advantage of rising demand in China. It has also been investing in the production of new recyclable plastics. It is my view that RPC’s position in the industry gives it a unique edge over smaller peers to adapt to the global shift towards more eco-friendly products. 

Despite the company’s efforts, it seems the market is not willing to give it the recognition it deserves. As they flee the stock, investors have sent the shares plunging by 26% over the past 12 months. 

According to management, these declines are now weighing on growth plans. Chairman Jamie Pike published a statement alongside a pre-AGM trading update this morning and said: “Pressure on the company’s market valuation and differing investor views on the appropriate level of leverage is constraining the group’s ability to pursue some attractive opportunities for growth.“

Be greedy when others are fearful

Based on this feedback, management is now looking to de-lever the business and sell off non-core assets. Personally, I believe cleaning up the balance sheet is probably the best course of action for the firm.

Debt does not pose a threat just yet (at the end of 2017 RPC reported a net debt-to-EBITDA ratio of 2), but I would rather the group took action to stabilise the balance sheet before it’s too late. 

Looking at last year’s figures, reducing debt shouldn’t be too much of a struggle. Asset sales will help, and free cash flow for 2017 was £229m, compared to a net debt balance of £1.1bn. The group has already identified some non-core businesses for disposal. 

In my opinion, RPC’s management has already proven to investors over the past 10 years that it can successfully set a strategy and execute it. With this being the case, I’m confident that the group’s self-help strategy will yield the desired results. The enterprise will come out stronger and better placed for growth on the other side. 

Today you can buy into this growth story for just 9.9 times forward earnings, and there’s a 4% dividend yield on offer as well. To quote Warren Buffett, I believe now is the time for investors to be greedy while others are fearful

StockMarketWire.com
Plastics company RPC Group said it had entered into preliminary discussions about a possible sale of the company with each of Apollo Global Management and Bain Capital.

RPC said it was responding to media speculation that it was exploring a sale.

Apollo and Bain were required to make a firm offer for the company buy no later than 8 October 2018 under UK rules, RPC noted.

Half year results

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

Going by the chart we're ready for another spike
To 800+

29 Nov
JP Morgan...
1,000.00
Overweight

Update re: potential offer and deadline extension
RNS
RNS Number : 1464J
RPC Group PLC
03 December 2018

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION
THIS ANNOUNCEMENT IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE") AND THERE CAN BE NO CERTAINTY THAT AN OFFER WILL BE MADE, NOR AS TO THE TERMS ON WHICH ANY OFFER WILL BE MADE
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
3 December 2018
UPDATE REGARDING POTENTIAL OFFER AND EXTENSION TO DEADLINE UNDER RULE 2.6(C) OF THE CODE
RPC Group Plc ("RPC" or the "Company") previously announced that discussions were taking place with each of Apollo Global Management and Bain Capital which may or may not result in an offer for the Company.
In accordance with Rule 2.6(a) of the Code, each of Apollo Global Management and Bain Capital were required, by not later than 5.00 p.m. on 3 December 2018, to either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.
Discussions remain ongoing with Apollo Global Management and in accordance with Rule 2.6(c) of the Code, the Board of RPC requested that the Panel on Takeovers and Mergers (the "Panel") extend the deadline referred to above with respect to Apollo Global Management to enable continued discussions to take place. Accordingly, an extension has been granted by the Panel and Apollo Global Management must, by no later than 5.00 p.m. on 21 December 2018, either announce a firm intention to make an offer for RPC in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Panel.
RPC and Bain Capital have mutually agreed to terminate discussions. In accordance with Rule 2.6(a) of the Code, Bain Capital is required, by not later than 5.00 p.m. on 3 December 2018, to either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. In the case of Bain Capital, the Board of RPC has not requested an extension of this deadline from the Panel.
A further announcement will be made when appropriate. There can be no certainty that any offer will be made for the Company, nor as to the terms on which any offer might be made.