That stock News

Group RPC
288?p + 8?
Questor says BUY

The company manufactures packaging rigid plastic - including the bottles used for Heinz ketchup.
It also produces paint pots, containers for cosmetics, Tablet distributors, VoIP and
many other articles made of plastic.

Actions were weak in the end, as the price of contents first polymer RPC uses highs new success--but investor fretted must step have their they venerate yet.Interim results published yesterday were very good, with revenues reaching 9pc ￡ 381.9 m and taxes until 52pc 18 million profits of ￡. However, adjusted operating profit rose more modestly, to ￡ 21. 8 ￡ 19 m.1 m.

Volume growth was 3pc, what could be to customers or a reprise.Mais repopulation made revenues were higher 9pc shows how RPC can transmit polymer prices customers - albeit via a lagged effect.

Increase in volume was in areas such as pharmaceuticals, personal care and capsules coffee - although there is still pressure on segments high-volume, low margin of its activities as plastic cups and margarine tubs.

Company - called RPC 2010 - cost reduction program comes to its end after it was launched two years ago and he demonstrated importants.Le program benefits involves the closure of several plant and reduce its cost base.He saw the costs fall by approximately 21 million ￡-￡_2 m more than expected in its last update.Obviously, after the end of the official program of the reduction of costs, the company will continue to monitor costs.

With almost complete restructuring, RPC is now ready to resume a growth program.

Packaging generally is expected to grow to GDP, with rigid plastic packaging is expected to grow at a faster pace because of the effect of continuous substitution of plastic, glass and métal.RPC also said he continued to seek opportunities for organic growth and through acquisitions.

In all, was a first half better that most observers expected, despite an increase in prices for the resin.

Balance sheet of the company is also strong, with net debt maturing ￡ 74.2 m, below expectations of some analysts .c ' is lower than the position of ￡ 80.2 March 31 m and ￡ 102.8 m a year ago.

The company must have a broad economic recovery and will continue to transmit if student fresh input to clients that they should occur, although some analysts polymer prices falls within the second moitié.Les group shares are trading on March 2011 multiple 9.9 times earnings falling 9.1 in 2012.Les actions are also producing a 9pc 3.

RPC has been first recommended to 211 p on July 26 and actions are now higher than 37pc, compared to a FTSE 100 up 21pc.

They remain a purchase.

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