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RPC increases Q3 revenues as it awaits Superfos takeover verdict

By Rory Harrington , 31-Jan-2011

Rising sales volumes and passing on higher polymer costs to customers were two reasons for increased third quarter revenues, said RPC today in its interim management statement.

The UK-based company said a jump in demand for coffee capsule and personal care items were the main drivers behind climbing sales for the three-month period to 31 December, 2010.

“Revenue in the corresponding period increased due to the improved volumes and rising price levels, as higher polymer costs were passed through to the customer base,” said a RPC statement.

While it declined to release any specific figures, the firm said year-on-year operating profits were up on increased activity levels and a lower cost base – thanks mainly to its efficiency programme RPC 2010, which is due to be completed soon.

The company said its financial position was “robust with satisfactory cash flow developments” in the quarter.

RPC said its shareholders had given the green light in early January for the proposed acquisition of Superfos, announced on 16 December and that the company had successfully raised more than ₤85m through a rights issue. A final decision from French and German competition authorities on the deal was still on track for February, it added.

“It is pleasing to note that whilst trading conditions continue to be affected by the uncertain economic environment and rising polymer prices, the Group is able to improve its performance benefiting from an increase in activity levels and a more efficient cost base”, said company CEO Ron Marsh.

He added that with the completion of the efficiency programme, the firm now planned to focus on growth.