RPC performance ahead of expectations

In a trading update, the Northamptonshire-based company reported revenue in the financial year 2010/11 is anticipated to be well ahead of last year with higher selling prices and increased volumes. Selling prices had risen due to the pass through of increasing polymer prices to the customer base as well as an improvement in the sales mix as significant growth has been achieved in the higher added value sectors of pharmaceutical, personal care, long shelf-life and coffee capsules. The statement said that in spite of the polymer price developments, profits for the full year were anticipated to be better than management's expectations. In February, RPC acquired Danish rival Superfos, a Copenhagen headquartered manufacturer of injection moulded plastic packaging, for €240 million (£208m) and its performance is also ahead of expectations with sales volumes up by around 5%. RPC CEO Ron Marsh said: "It is very pleasing to see that the overall performance of the Group has improved and is ahead of our expectations despite the headwind we have faced this financial year in terms of rising polymer prices. Margins will be enhanced going forward as the sales mix continues to move towards higher added value products. The Superfos acquisition will further strengthen the enlarged Group as we continue the integration and benefit from the synergies that exist. I am confident in the Group's growth prospects based on leading market positions, good technological capabilities and exciting new product initiatives, supported by a strong financial position."