Leading rigid plastics packaging supplier RPC Group (Higham Ferrers, Rushden / UK; www.rpc-group.com) said its operating profit in the half-year to 30 September 2010 is expected to be ahead of the GBP 19.1m (EUR 21m) reported for the corresponding period last year. This has been achieved, according to the company’s pre-close update of 30 September, thanks to a more efficient cost base, with an improvement in volumes offsetting the squeeze in gross margins brought about by further increases in polymer price levels.

Volumes in the personal care, pharmaceutical and coffee capsule sectors have been growing substantially due to a combination of cyclical recovery and organic growth. Activity levels in other sectors have, however, been more subdued. CEO Ron Marsh said the expected operating profit demonstrated RPC’s resilience in a period when polymer prices have risen to a record high. He added: “The improvement in activity levels in certain sectors is equally encouraging, with the group entering the next phase of delivering sustainable and profitable growth in what continues to be a challenging environment.” Overall, the financial position is said to remain robust, with a satisfactory cash flow performance.

The RPC 2010 restructuring programme has progressed well, with the plant closures expected to be completed by the end of the company's financial year (31 March 2011). Performance enhancement is continuing as part of that programme. The half-year results will be published on 30 November.