High polymer prices dent RPC results
sales turnover but a decrease in its operating profits.
UK-based rigid containers manufacturer RPC has announced increased sales turnover but a decrease in its operating profits.
The company said that increased orders had lifted interim turnover by 6 per cent to £201 million (€315m). However, operating profits for the six months to 30 September were depressed by higher raw material costs, and consequently fell from £13.5 million to £13.1 million.Presently the company operates 33 plants across a total of nine European countries.
The company reported that polymer prices were on average 17 per cent higher than in March, which in turn raised operating costs for the half by £6.5 million.
Pre-tax profits edged up from £9.9 million to just over £10 million as the company's interest charge on outstanding debts fell from £3.6 million to £3 million.
The company also announced that it expected its second half to be more dynamic, with the effects of two big contracts - one for Unilever margarine tubs - starting to making an impact. Forecasts for the full year are that profits should rise from £20 million to £24 million.
