That stock News

Questor says BUY

There were strong winds in terms of polymer prices, but the company is able to pass these to customers.However, it takes a few months to do this, there is a delay effect if increases the cost of entry. Despite this, the Group expects always respond to forecasts throughout the year.

In its commercial update has a few weeks, the company said revenues for the first half of the year would be higher than in the first half of last year.

This is in part to rising prices of polymer transmitted but volumes were also higher. It means operating profit should be ahead of last year.

Operating margins are also expected to have increased.

About 60pc 70pc of business of the group is in the production of packaging plastic tailor-made contracts lasting from three to five years.This means gains are quite visible.

The company initiated a program called RPC 2010, involving the closure of a number of plants and reduce costs base.De obviously, after the end of this fiscal year, the company will continue to monitor costs.

RPC said volumes in its pharmaceutical, personal care and coffee capsule sectors have experienced growth "substantially" due to a combination of cyclical recovery and growth organique.La company is a market leader in the area of coffee - capsules .the levels of activity in other sectors were generally more discrete.

The shares are trading on March 2011 multiple 10.2 times, falling to 9.3 in 2012.Les pay actions are also producing 3 8pc.

They were initially recommended to 211 p on July 26 and they are now higher than 41pc, compared to a market of 23pc .the ' business must have a broad economic recovery and will continue to pass on rising customer input costs should they occur.

Actions remain a purchase, but the gains are likely to be slow and regular, as they were in the past year.

View the original article here