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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Targetfollow, led by founder Ardeshir Naghshineh, issued a statement yesterday saying he agreed to terms with a "high-quality institutional consortium" to invest 150 million pounds in the company.

However, according to sources close to talks, Lloyd's, which is more than 700 m from ￡ Targetfollow, does not support the proposals and provides always moving forward with a high court pleadings week next on the question of whether the real estate company is placed in the administration.

Targetfollow is reached Covenants on its debts and Lloyd's must approve any injection of capital, but it is understood that the Bank considers the consortium terms are "not feasible" and would need to take writedowns .the' offer is 'far' in that the Bank considers appropriate sources.Lloyd said ' S has refused to comment.

Targetfollow is due to the Court next week after that has been given two weeks to find an investor rescue earlier this month.

￡ 150 M from the consortium proposed program would acquire a part of the debt of the Lloyd's and provide working capital to the Targetfollow.M.Naghshineh said: "I believe that this consortium addresses the issues raised by the Bank with the company for 12 months and will pave the way for the Bank and the company move from what has been a very difficult period." "

Lloyd's manages approximately ￡ 30bn problème.Le slowdown in sector property debt led to the Bank to the injurious losses during the crisis financière.Derniers Calyon ventures, property arm of joint-venture of HBOS, show that its investments fell in value by 590 million from ￡ 345 million to ￡ last year.

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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.

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