RPC GROUP
Growth maintained despite increases in polymer costs / Strong order books in both the UK and mainland Europe
Pre-tax profits at the RPC Group (Highham Ferrers, GB - Northants NN10 8RP) rose by 8.6%, to GBP 19.8m, on sales of GBP 296m in the fiscal year to 31 March, despite the company terming the 12 months an “unfavourable trading environment”. Earnings per share rose 10%. A record sum of GBP 24m was invested in capital projects over the period, most of which involved creating additional capacity, and a further GBP 27m was spent on acquisitions. As a result net borrowings have risen to GBP 67m, compared with GBP 45m on 31 March 1999.
Testimony to the group´s successful group strategy, said chief executive Ron Marsh, was a 13% increase in total tonnage requirements, of which just over half was accounted for by the acquired companies. Overall, the business spent an additional GBP 30m on raw materials because of wide-ranging increases in polymer prices.
Volume sales moved ahead 3% in the UK, with margins being maintained at 11.7%. Currently, RPC says it has a very strong UK order book from the important paint and DIY sector. In mainland Europe, where acquisitions together accounted for some 7% of sales by volume and value, the margin last year was only 5.0%, principally because of the impact of polymer price increases. But the sales positon is very healthy. “Our operations on mainland Europe are enjoying almost unprecedented levels of demand for our products,” said chairman Lindsey Mackinlay, “which look set to continue into the foreseeable future.”
RPC´s spending of GBP 51m on acquisitions and capital projects is said to have enabled the group to make considerable progress towards its strategic objective of being a supplier of choice in product groups such as disposable cups and personal care/beauty packaging across Central and Western Europe. “In most of the sectors in which we operate,” said Marsh, “we have few competitors who are able to match both our broad product range and our comprehensive geographical coverage.”
The RPC activities are grouped into three businesses: thermoforming, injection moulding and blow moulding. Thermoforming is the biggest single process. This incorporates the Tedeco-Gizeh operation, which manufactures disposable cups in six countries, the Bremervoerde-based Bebo food tubs business, that, following the purchase of TW Packaging Twente, has two factories in both Holland and Poland, and the Cobelplast sheet activities, which now incorporate the recently-acquired Italian firm of Montonate.
The UK injection moulding operation has six sites manufacturing pails, tubs and cans. The business now includes Cresstale – bought in September – which will focus on the production of sticks, jars and cases for the personal care/beauty market. It will work in conjunction with the Bramlage plant in Germany, with the aim of helping the group achieve a top-three position in the European market.
RPC also has one of the most comprehensive networks of blow moulding factories in Europe. Following the purchase of Able Industries´ PET business, it now has three plants in the UK, two in Spain and others in Germany and Belgium. Multi-layer expertise from the Corby factory in the UK is being transferred to the Oevel plant in Belgium.
Testimony to the group´s successful group strategy, said chief executive Ron Marsh, was a 13% increase in total tonnage requirements, of which just over half was accounted for by the acquired companies. Overall, the business spent an additional GBP 30m on raw materials because of wide-ranging increases in polymer prices.
Volume sales moved ahead 3% in the UK, with margins being maintained at 11.7%. Currently, RPC says it has a very strong UK order book from the important paint and DIY sector. In mainland Europe, where acquisitions together accounted for some 7% of sales by volume and value, the margin last year was only 5.0%, principally because of the impact of polymer price increases. But the sales positon is very healthy. “Our operations on mainland Europe are enjoying almost unprecedented levels of demand for our products,” said chairman Lindsey Mackinlay, “which look set to continue into the foreseeable future.”
RPC´s spending of GBP 51m on acquisitions and capital projects is said to have enabled the group to make considerable progress towards its strategic objective of being a supplier of choice in product groups such as disposable cups and personal care/beauty packaging across Central and Western Europe. “In most of the sectors in which we operate,” said Marsh, “we have few competitors who are able to match both our broad product range and our comprehensive geographical coverage.”
The RPC activities are grouped into three businesses: thermoforming, injection moulding and blow moulding. Thermoforming is the biggest single process. This incorporates the Tedeco-Gizeh operation, which manufactures disposable cups in six countries, the Bremervoerde-based Bebo food tubs business, that, following the purchase of TW Packaging Twente, has two factories in both Holland and Poland, and the Cobelplast sheet activities, which now incorporate the recently-acquired Italian firm of Montonate.
The UK injection moulding operation has six sites manufacturing pails, tubs and cans. The business now includes Cresstale – bought in September – which will focus on the production of sticks, jars and cases for the personal care/beauty market. It will work in conjunction with the Bramlage plant in Germany, with the aim of helping the group achieve a top-three position in the European market.
RPC also has one of the most comprehensive networks of blow moulding factories in Europe. Following the purchase of Able Industries´ PET business, it now has three plants in the UK, two in Spain and others in Germany and Belgium. Multi-layer expertise from the Corby factory in the UK is being transferred to the Oevel plant in Belgium.
10.08.2000 Plasteurope.com [17236]
Published on 10.08.2000