Packaging specialist RPC Group reported record first-half profits on Wednesday driven by combined organic growth and contributions from acquisitions.
The company also benefitted from currency movements that acted in its favour to report a 58% increase in first-half adjusted operating profit to £214.7m.
Despite some impressive gains that beat market expectations, the shares were highly volatile in morning trade on the FTSE 250.
- Revenue growth of 53% to £1,876m reflecting the contribution from acquisitions, organic growth, polymer price tailwinds and translation benefits from foreign exchange movements
- Adjusted operating profit increase of 58% to £214.7m with adjusted EPS up 27% to 36.4p
- Return on sales increase of 30 basis points to 11.4%
- Statutory net cash from operating activities increase of 62% to £245.4m, and free cash flow up 45% to £171.7m
- Interim dividend of 7.8p up 28% representing the 25th year of consecutive growth
- More than 20% of revenues now generated outside of Europe
- Healthy innovation pipeline; one additional innovation centre added taking the total to 32 worldwide
- Share buyback scheme implemented to deliver further shareholder value; £12.4m of capital deployed in the period
Pim Vervaat, chief executive (left), said: "Trading was encouraging in the first half with record profitability levels and strong cash generation.