RPC said trading so far in new financial year is in line with expectations as the dividend is raised by 50%
Revenues rose by 67% to £2.7bn whilst pre-tax profits rose by 78%
The Share Centre recommends RPC as a ‘buy’ for higher risk investors with a balanced portfolio
As RPC reports its full year results Ian Forrest, investment research analyst at The Share Centre, explains what it means for investors.
“Packaging group RPC beat market expectations today with a strong set of full-year results, and said it continues to look for growth opportunities.
"RPC, which supplies a wide range of packaging from jerry cans to fruit juice bottles, said that trading so far in the new financial year is in line with expectations. Furthermore, income seeking investors should note that the group has raised the dividend by 50%.
“The company also confirmed that revenues rose by 67% to £2.7bn with pre-tax profits up 78% to £286.1m. Revenues were boosted by recent acquisitions including British Polythene Industries and GCS. Acquisitions are a central focus for the firm’s strategy, with the latest in the steady stream being US plastic packaging group Letica which has made a promising start.
“These are good figures today from RPC which clearly demonstrate the benefits of the company’s strategy. It is also reassuring for investors to hear that it remains committed to continuing with this approach despite some recent criticisms. We therefore retain our ‘buy’ recommendation on the shares because of the company's good growth record, potential for expansion through further acquisitions and the strong dividend policy.”