RPC is steady in another tough year

Plastics packaging group RPC is continuing to face high polymer costs and lower demand in its domestic UK market.

In its pre-close trading statement, RPC said overall sales in its 2007/08 financial year are expected to have increased on a like-for-like basis.

“For the year as a whole the group anticipates that underlying operating profit will be little changed from last year as a result of continuing input cost pressures (particularly polymers) and weakening UK market demand,” the statement said.

In 2006/07, RPC’s revenue was £645.7m, adjusted EBITDA was £72.2m, and post-tax profit was £13.1m.

RPC added: “Exceptional costs will be significantly higher than last year as the restructuring efforts have continued at a high level in the second half in order to provide a strengthened business going forward.”

In its restructuring, the group has implemented a series of measures, including closures in the UK (PRW.com 23 August 2007) and an acquisition in Slovakia (PRW.com 15 June 2007).

RPC said: “Good progress continues to be made with the integration of the recently acquired businesses.”

The group is also facing higher finance charges because of higher borrowings, the weakness of sterling versus the euro and increases in interest rates on the floating portion of its bank debt.