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RPC Group PLC (RPC)

  Print      Mail a friend       Annual reports

Tuesday 12 June, 2012

RPC Group PLC

Final Results

RNS Number : 1292F
RPC Group PLC
12 June 2012
 



 

12 June 2012                                     

 

RPC GROUP PLC

 

Preliminary results for the year ended 31 March 2012

 

 

RPC Group Plc, Europe's leading supplier of rigid plastic packaging, announces today its results for the year ended 31 March 2012.

 

 

Highlights:

 

§ Revenue increased by £311m to £1,130m due to the full year impact of Superfos and 5% growth on a like-for-like basis with underlying overall volumes on a similar level to last year;

 

§ Adjusted operating profit improved by 68% to £93.5m (2011: £55.8m);

 

§ Adjusted EPS increased to 37.3p (2011: 29.9p);

 

§ Record net profit achieved of £44.7m (2011: £25.6m);

 

§ Strong cash performance with net cash from operating activities at £100.1m (2011: £69.3m)  and net debt reduced to £167.9m (2011: £178.7m);

 

§ Final dividend of 10.2p recommended giving a total year dividend of 14.4p (2011: 11.5p);

 

§ ROCE of 19.1% ahead of expectations (2011 pro-forma: 15.1%);

 

§ Superfos integration largely completed with synergies of £10m achieved in first full year of ownership.

 

 

Commenting on the results, Jamie Pike, Chairman, said:

 

"It is pleasing to report yet another record performance. The Superfos business has been successfully integrated and has made a significant contribution whilst the growth in higher added value products continued. Very good progress has been made towards achieving our stated 20% ROCE target. Notwithstanding the current economic uncertainties, following the significant increase in underlying earnings after the Superfos acquisition the Board is proposing to increase the final dividend to 10.2p representing a full year increase of 25%."

 

 

 

For further information:

 

RPC Group Plc                   01933 410064                                                       Kreab Gavin Anderson       020 7074 1800

Ron Marsh, Chief Executive                                                                              Robert Speed      

Pim Vervaat, Finance Director                                                                          Anthony Hughes

 

This preliminary announcement contains forward-looking statements, which have been made by the directors in good faith based on the information available to them up to the time of the approval of this report and such information should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information.


 

 



 

Overview of the Year

 

I am pleased to report another excellent set of results for the Group which were delivered against a background of increasingly tough economic conditions. Adjusted operating profit1 increased by 68% from £55.8m to £93.5m, reflecting both the full year impact of Superfos trading and an improvement in margins in the pre-acquisition business driven by further growth in higher added value products. Sales were at a record £1,130m (2011: £819m) and adjusted earnings per share2 increased by 25% to 37.3p (2011: 29.9p). Cash flow was well controlled with the Group ending the year with lower net debt of £168m (2011: £179m).

 

The Superfos business, which was acquired in February 2011, has been successfully integrated into the Group and now operates as a stand-alone cluster with key management retained. Unfortunately it was necessary to close the UK site at Runcorn which has been largely completed without any significant loss of business. Together with the centralisation of polymer purchasing and other overhead savings, the acquisition has delivered cost and revenue synergies of £10m in the first year of ownership, with more to come as expected. In addition circa £20m of cash synergies related to working capital management have been realised. Overall the Superfos acquisition has been significantly earnings enhancing.

 

In January 2012 the Group announced its intention to exit from the loss making vending cup business in mainland Europe and its automotive components business in Germany before the end of 2012. These businesses operate in a very competitive environment where it is no longer possible to generate satisfactory returns for the Group.

 

1    Adjusted operating profit is defined as operating profit before restructuring, closure and impairment charges and other exceptional items.

 

2    Adjusted earnings per share is defined as adjusted operating profit after interest and tax adjustments divided by the weighted average number of shares in issue during the year.

 

Strategy

 

RPC's strategy is to grow and develop leading positions in its chosen product markets and geographical areas in the rigid plastic packaging industry, by establishing strong long-term relationships with its customers and by developing high quality, innovative products that meet customer needs. The Group achieves and maintains its leading market positions by continued innovation and investment, leveraging RPC's leading technological capability and through strategic corporate development.

 

Following the successful completion of its restructuring programme, RPC 2010, and the recent acquisition of Superfos, the Group is well placed to continue to grow by building on its strong market positions and technological know-how. The Group's current aim is to achieve a return on capital employed (ROCE) of 20% following the realisation of £15m to £25m steady state cost and revenue synergies related to the Superfos acquisition, assuming a non-recessionary economic environment and no significant volatility in raw material prices. Good progress was made during the year towards meeting the target with a ROCE of 19.1% realised (2011 pro-forma: 15.1%).

 

Opportunities for further organic and acquisitive growth continue to be explored, both in the European and US markets as well as in less mature, higher growth economies outside Europe.


 

Board and Governance

 

There have been a number of recent changes to the Board. Peter Wood, who joined as a non-executive director in 2006, retired on 31 March 2012. I would like to take this opportunity to thank Peter for the contribution he has made to the Board over the last six years. Martin Towers has taken over Peter's role as Senior Independent Director and Stephan Rojahn has been appointed Chairman of the Remuneration Committee.

 

 

I am pleased to welcome Ilona Haaijer, who joined the Board on 30 May 2012 as a non-executive director. Ilona, who is a Dutch national, is currently President of the global Personal Care business unit and a member of the Executive Committee of the Nutritional Products division of Royal DSM NV, a global life sciences and material sciences company quoted on the Euronext Stock Exchange in Amsterdam.

 

Corporate Governance continues to evolve and emerging practice has remained a regular subject for discussion at the board. We seek to run our businesses in a responsible way, recognising that good corporate governance supports the long term health of the Group. Acknowledging the need to review regularly the effectiveness of our external auditors, during the year the Audit Committee undertook an external audit tender which resulted in the recommendation that KPMG Audit Plc be re-appointed as Group auditors.

 

As a consequence of a decentralised structure, the Group is able to provide many opportunities for individuals to make their own contribution to the Group. On behalf of the Board I would like to thank all employees for their outstanding efforts, who together have enabled the Group to deliver a strong financial performance for its shareholders, and I look forward to their contribution in achieving our growth strategy.

 

Dividend

 

In light of the Group's financial performance and in line with its progressive dividend policy of targeting dividend cover at approximately 2.5 times adjusted earnings through the cycle, the Board is recommending a final dividend of 10.2p per share making a total for the year of 14.4p, representing a 25% increase over the previous year.

 

Subject to approval at the forthcoming AGM, the final dividend will be paid on 7 September 2012 to shareholders on the register on 10 August 2012.

 

 

 

 

 

 

 

J R P Pike                                                                  

Chairman                                                                   

 

 

 


 

Group Overview

 

RPC is a leading supplier of rigid plastic packaging with operations in 18 countries. The business, which comprises 50 manufacturing sites and six separate distribution and sales centres, converts polymer granules into finished packaging product by a combination of moulding and assembly processes. It is organised around the three main conversion processes used within the Group, each site being managed within one of seven clusters which are defined along technological and market lines.

 

Conversion process

Cluster

Markets

 

Injection Moulding

UK Injection Moulding

Paints, DIY products, soups & sauces, edible fats, promotional products


Bramlage-Wiko

Personal care, pharmaceuticals, cosmetics, tablet dispensers & inhalant devices, food, coffee capsules


Superfos

Food, soups & sauces, margarine & spreads, paints, DIY products

Thermoforming

Bebo

Margarine & spreads, fresh, frozen and long shelf-life foods, coffee capsules, dairy market


Tedeco-Gizeh

Vending & drinking cups, coffee capsules, disposable products,


Cobelplast

Phone cards, long shelf-life foods and sheet for form-fill-seal lines

Blow Moulding

Blow Moulding

Personal care, automotive, agrochemicals, food & drink, long shelf-life foods

 

Each cluster has on average seven manufacturing sites, operating across a wide geographical area for reasons of customer proximity, local market demand and manufacturing resource. Each plant is run autonomously, commensurate with maintaining overall financial control and effective co-ordination in each market sector. Hence every cluster and most operating sites have a separate management team headed by a cluster or general manager. This structure encourages focus on business issues and delivers enhanced performance.


 

Group Performance

 

In 2011/12 the Group delivered another strong financial performance, reflecting not just the full year impact of the Superfos business but margin and operating profit improvements in the existing businesses. This was achieved in spite of generally tough market conditions which adversely impacted a number of the markets in which the Group operates. However continued investment in innovative product development with key customers and the further growth in sales of higher added value products of 15% (on a like-for-like basis) have more than compensated for these effects.

 

Considerable progress was made in integrating the Superfos business during the year and it now operates as a standalone cluster. The UK site at Runcorn will be closed in June 2012 with its business successfully transferred to other sites within the UK Injection Moulding cluster. The alignment of purchasing contract terms to those used in the rest of the Group, together with other reorganisation and efficiency improvements, have already realised £10m of the £15m to £25m of steady state cost and revenue synergies identified, ahead of initial estimates for the first year of ownership. A further £5m of synergies is expected to be realised in 2012/13. The Group incurred £6.4m of exceptional charges in making these changes, mainly relating to redundancies and impairments at Runcorn together with other cost saving and integration costs. Circa £20m of cash synergies with respect to working capital reduction had been realised by March 2012 of which £12m were already achieved in the previous year.  

 

 

 

As part of the on-going review of its businesses and their market positions, in January 2012 the Group announced its intention to exit the vending cup business in mainland Europe. The market for plastic vending cups had been severely hit by the recession over the last couple of years and the structural oversupply in this market had led to both margin erosion and volume losses. Consequently the decision was made to withdraw from the market in mainland Europe. However the Group enjoys a strong market position in vending cups in the UK and remains committed to this business. At the same time the Group announced that it would also exit, either through closure or sale, from its automotive components business in Germany which had become loss making over recent years in a highly competitive market. Exceptional redundancy and impairment costs of £12.6m have been charged in the year relating to both of these withdrawals and further costs will be incurred in 2012/13. It is anticipated that proceeds from asset sales together with the release of working capital will be more than sufficient to fund any redundancy costs.

 

Revenue for the year increased by 38% to £1,130m due to the inclusion of the Superfos business and 5% growth in like-for-like sales. As sales volumes, measured in polymer tonnes converted, were at similar levels year on year, the growth was achieved through higher selling prices due to sales mix improvements and the pass-through of higher polymer prices to customers. The adjusted operating profit reached a record £93.5m (2011: £55.8m) driven by the impact of Superfos and its related synergies and improved profitability of the pre-acquisition business. Increased levels of sales in higher added value products such as long shelf-life food packaging, pharmaceuticals and coffee capsules compensated for lower activity levels in sectors such as paint containers, industrial products and vending cups.  In addition, margins were enhanced by a more stable polymer market although polymer prices did rise to record levels in the last quarter of 2011/12.

 

As a consequence of the above and through selective capital investments and a continued focus on working capital management, the Group achieved a ROCE of 19.1% which is significant progress towards achieving its stated target of 20% within the first three years of ownership of Superfos.

 

 

New Product Development

 

RPC remains at the forefront of polymer conversion technology in the packaging industry and has developed an enviable reputation in the market place for innovative packaging design and concepts. Through its design and development facilities, the Group is able to develop unique packaging solutions that meet the needs of individual customer demands.

 

Good progress has been made in developing light-weight injection moulded products, most recently in the paint containers business, with both the UK Injection Moulding cluster and Superfos developing new technologies in this area. In thermoforming, the Group is among the world-wide leaders in the production of multi-layer, high barrier trays and tubs for oxygen sensitive foods thereby replacing long shelf-life packaging in other materials with light-weight plastic alternatives, such as packaging for baby food, sauces and ready meals. In blow moulding, developments in the multi-layer bottle and jar market continue to move forward where there is a potentially significant opportunity for substitution of glass by plastic due to its weight reduction and a more favourable carbon footprint.

 

The overall innovation capabilities across the range of conversion technologies combined with the ability to continue to invest and the geographical reach of the Group provides RPC with a significant competitive advantage.

 

The Group's commitment to growing higher added value products and investment in innovation was reflected in its higher levels of capital expenditure, which at £72m were significantly ahead of the depreciation level of £45m. The Group remains committed to invest in projects that are innovative, provide a competitive advantage and generate attractive returns.

 



 

Injection Moulding


12 months to

31 March

2012

12 months to

31 March

2011


£m

£m




Revenue

657.7

369.0

Adjusted operating profit

66.8

30.9

Return on sales

10.2%

8.4%

Return on net operating assets

28.2%

26.0%

 

The business comprises the UK Injection Moulding (UKIM), Bramlage-Wiko and Superfos clusters. Overall the injection moulding business performance was very strong over the year, with sales and operating profit significantly higher due to the inclusion of a full year of trading of the Superfos business. The increase in operating profit was due to the additional Superfos profitability, realisation of the associated synergies and like-for-like profit improvement driven by growth in the personal care and pharmaceutical sectors, offsetting volume reductions in paint containers.

 

The UKIM cluster, which comprises five sites in the UK, serves a wide range of customers in the food, health care and DIY markets. Overall sales volumes were slightly down compared with last year, with volumes still being affected by weak demand in the DIY retail sector and the relatively low level of activity in the UK housing market. The main focus for the cluster has been the integration of the Superfos site at Runcorn into the cluster. Following a review of its profitability its closure was confirmed in October, with the business being transferred to other sites within the UKIM cluster. This was achieved within the agreed timeframe and with no adverse impact on customer service.

 

Bramlage-Wiko, which operates in Germany, France, Belgium, Slovakia and the USA, continued to experience strong volume growth, mainly due to increased levels of new product development in pharmaceuticals, cosmetics and personal care. In these areas the Group is well positioned to take a significant share of new business opportunities through its strong market position and leading technological know-how. In the pharmaceutical segment the cluster benefited from moving to a sole supply position with a major customer, whilst further efficiencies were achieved by increasing production at the Slovakian manufacturing facility. Significant growth opportunities have arisen in the USA, again based on the Group's leading technological position. During the year, the cluster concluded a strategic review of its automotive components business at Neutraubling (Germany) resulting in the decision to exit from this highly competitive non-core market.

 

Superfos manufactures and distributes open top filled injection moulded containers and has manufacturing facilities in France, Belgium, Spain, Poland, Denmark and Sweden, with joint ventures in Turkey and North Africa.  Although sales volumes in southern Europe were subdued due to the weak macro-economic environment, particularly within the paint and industrial products segments, overall margins were strong as the polymer purchasing and other synergies started to take effect. Its integration into the RPC Group has progressed very well with Superfos now operating as a standalone cluster and with key management retained. Purchasing of raw materials has been centralised at Group level whilst the necessary central overhead cost reductions have been effected. Growth opportunities in light-weighting and barrier products are being actively pursued as is the future delivery of cross-selling opportunities across the relevant geographical areas.

      

 



 

Thermoforming


12 months to

31 March

2012

12 months to

31 March

2011


£m

£m




Revenue

287.7

281.4

Adjusted operating profit

13.7

14.7

Return on sales

4.8%

5.2%

Return on net operating assets

20.0%

22.0%

 



 

Blow Moulding


12 months to

31 March

2012

12 months to

31 March

2011


£m

£m




Revenue

184.5

168.8

Adjusted operating profit

13.0

10.2

Return on sales

7.1%

6.0%

Return on net operating assets

21.8%

17.7%

 

The blow moulding operations are based both in the UK and in mainland Europe. Overall the blow moulding business performed well in the year as it continues to consolidate its market positions and benefits from the restructuring activities of prior years. Sales volumes improved again and adjusted operating profit increased by 27% to £13.0m.

 

There was strong demand in both food and non-food sectors with good volume increases at Corby (UK), Gent (Belgium), Montpont (France) and Llantrisant (UK). The Corby business has particularly benefited from the strong demand for barrier blow moulded plastic jars and bottles as manufacturing capability and technological innovation is helping to accelerate the conversion of conventional glass and metal packaging to lighter weight plastic. Rising demand from the agrochemicals market improved the activity levels at Gent and Montpont whereas Llantrisant increased its sales through the gain of a major contract for PET containers. In the rest of the UK volumes were relatively subdued, the warm winter weather weakening demand for de-icing products and lower demand for standard containers used by industrial customers due to the general economic downturn.

 

Blow moulding product innovation during the year included the new 'anti-glug' bottle for the motor oil market and in foods the development of the 'Eurosqueeze' range of standard multilayer bottles.

 



 

Non Financial KPIs

 

RPC has three main non-financial key performance indicators (KPIs). From an environmental and cost control perspective electricity usage per tonne produced and water usage per tonne produced are measured. From an employee welfare perspective reportable accidents are monitored.

 

These non-financial KPIs are set out below:

 


2012

2011

Electricity usage per tonne (kWh/T)

1,788

1,837

Water usage per tonne (L/T)

706

769

Reportable accident frequency rate

1,389

1,695

 

Reportable accident frequency rate is defined as the number of accidents resulting in more than three days off work, excluding accidents where an employee is travelling to or from work, divided by the average number of employees, multiplied by the constant 100,000.

 

The Group continues to make stringent efforts to improve its efficient usage of electricity and water, with part of the improvement this year attributable to the inclusion of the Superfos sites in the reported figures. The reportable accident frequency rate improved significantly as a result of concerted efforts to raise awareness of the importance of health and safety matters throughout the Group.

 

 

Outlook

 

The outlook for the Group remains positive with good growth opportunities existing both in more mature European and US markets as well as emerging markets. Following the successful integration of Superfos and the planned withdrawal from the loss making businesses of vending cups in mainland Europe and automotive components in Germany, the Group has improved its competitive cost base and strengthened its leading market positions. The Group is on track to achieve its targeted ROCE of 20% in the year ending March 2014. In the short term the Group is contending with a difficult and uncertain macro-economic environment whilst the current weakness of the euro against sterling should be noted as a significant part of the earnings are made in the euro zone. The new financial year has started satisfactorily with results in line with management expectations.

 

 

 

 

R J E Marsh


Chief Executive



 


12 months to

31 March

2012

12 months to

31 March

2011


£m

£m




Revenue

1,129.9

819.2




Adjusted operating profit

93.5

55.8

Exceptional items

(20.6)

(18.0)

Operating profit

72.9

37.8

Net financing costs

(13.3)

(3.2)

Profit before tax

59.6

34.6

Tax

(14.9)

(9.0)

Profit after tax

44.7

25.6




Adjusted EPS

37.3p

29.9p




Net debt

167.9

178.7

 


Group Overview

 

The Group's results for the year were enhanced by both the inclusion of a full year's trading of Superfos, which only included six weeks of trading in the same period last year, and improvements in the profitability of the existing RPC business, including £10m of synergies from the integration of Superfos. In spite of higher capital expenditure levels than in previous years, cash was well controlled and net debt was reduced to £168m. Adjusted EPS increased by 25% to 37.3p.


 

Consolidated Income Statement

 

Group revenue for the year was significantly higher at £1,129.9m due to the inclusion of Superfos sales and a 5% increase in sales on a like-for-like basis. Overall like-for-like volumes measured in polymer tonnes converted were at similar levels to last year. The increase in sales was largely due to an improved sales mix of higher value added products, the impact of higher polymer prices on sales prices where these have been passed on to customers and a small currency translation impact. Revenue growth in higher added value products was 15%.

 

Adjusted operating profit (before restructuring costs, impairment and other exceptional items) increased by 68% to a record level of £93.5m, due to the impact of Superfos and related synergies as well as the like-for-like increase in profit driven by the impact of an improved sales mix of higher added value products. Overall average polymer index prices increased by 5% compared with last year, particularly in the last quarter of the financial year thereby reaching record levels. Whilst increases in polymer costs are passed on to customers, there is a time lag which adversely impacts on margins, particularly in those lower added value businesses where polymer is a larger proportion of sales value. On a pro-forma basis, the like-for-like adjusted operating profit for the enlarged Group improved from £74.3m to £93.5m driven by the realisation of synergies and enhanced gross margins due to a better sales mix and a less adverse time lag effect in passing through polymer prices. The added value per tonne improved from £1,933 per tonne to £1,983.

 

Exceptional items totalling £20.6m (2011: £18.0m) comprising restructuring, integration and closure costs of £14.2m (2011: £15.1m), impairment losses of £7.2m (2011: £0.7m) and other items of £(0.8)m (2011: £2.2m) were incurred. As expected the Group incurred £6.4m of integration costs and impairments following the acquisition of Superfos in February 2011, which included the closure of Runcorn and transfer of business to other UKIM sites, and other reorganisation and overhead savings within the Superfos business. In addition the Group provided for £8.0m of restructuring costs and impairments relating to the planned withdrawal from the mainland European vending cup business which will be executed in 2012/13, and provided for an additional £4.6m relating mainly to asset impairments at its automotive component business in Neutraubling, Germany. The remaining exceptional items of £1.6m relate to the finalisation of the RPC 2010 programme and include £0.3m of profit relating to the sale of the Bramlage Verschlüsse wines and spirits closures operation, a non-core business identified for sale within the RPC 2010 programme.

 

Net financing costs increased from £3.2m in 2010/11 to £13.3m in 2011/12. Net interest charges were £11.5m (2011: £4.2m) mainly reflecting the full year impact of the debt funding costs of the Superfos acquisition resulting in an overall increase in net debt over the year. In addition the cost of borrowings was higher for the Group over the year, following the renewal of the Group's bank credit facilities in December 2010 and the higher cost of borrowing from December 2011 on notes issued into the US Private Placement market. Unfavourable foreign exchange movements relating to the $40m US dollar bond issued in 2005 resulted in a net financial expense of £0.1m (2011: financial income £1.0m).  Net financing costs on retirement benefit obligations have been reclassified under net financing costs in order to comply with future changes to IAS 19 and to improve comparability with the Group's peers. A net charge of £1.7m arose in the year, comprising £6.0m for the expected return on pension fund assets and £7.7m for interest cost on retirement benefit liabilities.

 

The adjusted profit before tax increased to £80.3m (2011: £51.6m) as a result of the improvement in operating profit partly offset by the higher net interest charge. The tax rate on the adjusted profit before tax for the Group was 25.0% for the year (2011: 23.9%). The Group's overall taxation charge was £14.9m (2011: £9.0m). The resulting adjusted profit after tax was £60.2m (2011: £39.2m) and adjusted basic earnings per share increased to 37.3p (2011: 29.9p).

 

The improvement in operating profit, offset by slightly higher restructuring and impairment costs and higher net financing costs, resulted in a record net profit of £44.7m, compared with £25.6m in 2010/11. Basic earnings per share was 27.7p, compared with 19.5p in the previous year.

 

Consolidated Balance Sheet and Consolidated Cash Flow Statement

 

Goodwill and other intangible assets were largely unchanged and only affected by the translation impact of the weakening of the euro against sterling during the year. Property, plant and equipment increased slightly to £381.2m compared with the previous year end; net capital expenditure levels at £72.2m were £27.0m ahead of the depreciation charged in the period, as the Group accelerated its investment in growth sectors such as coffee capsules, personal care and pharmaceuticals. 

 

The £7.9m derivative financial instruments mainly comprise the mark-to-market value of euro currency swaps taken out to hedge the US dollar borrowings from the US private placement.

 

Continued focus on cash management led to a small reduction in working capital (the sum of inventories, trade and other receivables and trade and other payables) of £1.3m to £33.9m compared with the previous year, representing 3.0% of sales.    

 

The long-term employee benefit liabilities increased from £51.0m at the previous year end to £56.3m, mainly due to an increase in the UK net pension deficit. Although the return on the assets of funded pension obligations was significantly better than expected, and an additional lump sum contribution of £5m was made in the UK, the main cause of the rise in the defined benefit pension liabilities was due to the fall in bond yields over the year.

 

Capital and reserves increased in the period by £7.9m, the net profit for the period of £44.7m and the £5.7m of share and share-based payments from employee share schemes being partially offset by pension related net actuarial losses of £10.2m, dividends paid of £19.8m, adverse exchange movements on translation of £12.1m and £0.4m of net fair value movements on derivatives. Further details are shown in the Consolidated statement of changes in equity which is included in the financial statements.

 

Net cash from operating activities (after tax and interest) was £100.1m compared with £69.3m in the previous year, with higher cash generated from operations being offset by lower working capital improvements and higher interest payments.

Net debt at the end of the year stood at £167.9m (2011: £178.7m), reflecting the improved net cash generated from operations, partially offset by higher capital investment and higher dividends paid.  Gearing reduced to 62% (2011: 68%) and the net debt to EBITDA ratio reduced from 1.5 to 1.2. The average net debt for the year was £249m (2011: £158m).

 

The Group has total finance facilities of approximately £458m with an amount of £286m undrawn at 31 March 2012. The facilities are unsecured and comprise a revolving credit facility of up to £200m with nine major UK and European banks maturing in 2015, US notes of $216m and €60m issued by 17 US life assurance companies maturing in 2018 and 2021, mortgages of £15m and other credit and overdraft arrangements of £33m. The US notes were a debut issue raised in the US Private Placement (USPP) market in December 2011, the proceeds from which were used to refinance a €130m acquisition term loan used to purchase Superfos and floating rate notes totalling €35m and $40m which were issued in 2005 and became repayable in March 2012.  The USPP notes provide the Group with 7 year and 10 year dated borrowings strengthening the financial position of the Group for future growth. The Group was designated a NAIC-2 credit rating by the US National Association of Insurance Commissioners.

 

Financial Key Performance Indicators (KPIs)

 

The Group's main financial KPIs focus on return on investment, business profitability and cash generation. 


12 months to

31 March

2012

12 months to

31 March

2011




    Return on capital employed (1)

19.1%

15.1%

    Return on net operating assets (2)

    Added value per tonne (3)   

22.5%

£1,983

17.9%

£1,933

    Gross margin (4)

43%

42%

    Free cash flow (5)

£41.4m

£50.9m

    Cash conversion (6)

62%

102%

 

(1)   Return on capital employed (ROCE), which is measured over the previous 12 months, is defined as adjusted operating profit divided by the average of opening and closing shareholders' equity, after adjusting for net retirement benefit obligations and net borrowings for the year concerned.

(2)   Return on net operating assets (RONOA) which is measured over the previous 12 months, is defined as adjusted operating profit divided by the average of opening and closing property, plant and equipment, working capital and capital expenditure creditors for the year concerned.

(3)   Added value per tonne is the difference between production sales value per tonne produced and the cost of polymer per tonne produced. The 2010/11 comparative numbers have been restated using 2011/12 exchange rates and adjusted for the results of Superfos.

(4)   Gross margin is the difference between sales price and all directly variable costs such as polymer, packaging, transport and electricity. The 2010/11 comparative numbers have been restated using 2011/12 exchange rates and adjusted for the results of Superfos.

(5)   Free cash flow is defined as cash generated from operations less net capital expenditure, net interest and tax, adjusted to exclude exceptional cash flows and one-off pension deficit reduction payments.

(6)   Cash conversion is defined as the ratio of cash generated from operations less net capital expenditure excluding exceptional cash flows and one-off pension deficit reduction payments, to adjusted operating profit.

 

The key measure of the Group's financial performance is return on capital employed (ROCE).  This shows a 4.0 percentage point improvement on the previous year largely attributable to the higher adjusted operating profit. This improvement represents significant progress towards achieving the Group target of 20% ROCE by March 2014, following the realisation of the steady state synergies relating to the integration of Superfos and assuming a non-recessionary economic environment without significant volatility in raw material prices. Return on Net Operating Assets (RONOA) is also reported for the first time and shows a similar year on year improvement.

 

The improvements in added value per tonne and gross margin reflect the impact of an improved sales mix and a less adverse time lag effect of passing through polymer price variations to the customer base.  

The cash performance in the second half year improved giving a full year free cash flow of £41.4m despite the increase in mostly growth related capital expenditure, which represented 160% of depreciation levels. This higher level of capital expenditure also resulted in a year on year reduction in cash conversion.

 


 

P R M Vervaat

Finance Director



Consolidated income statement

for the year ended 31 March 2012


             

2012

2011


Notes

£m

£m





Revenue

3

1,129.9

819.2





Operating costs


(1,057.0)

(781.4)





Operating profit


72.9

37.8





Analysed as:




Operating profit before:

3

93.5

55.8

Restructuring and closure costs

4

(8.5)

(11.8)

Other exceptional items

4

(4.9)

(5.5)

Impairment losses

4

(7.2)

(0.7)

Operating profit


72.9

37.8





Financial income


0.8

2.3

Financial expenses


(12.4)

(5.5)

Employee benefit net finance expense


(1.7)

-

Net financing costs

5

(13.3)

(3.2)









Profit before taxation

3

59.6

34.6





Taxation

6

(14.9)

(9.0)





Profit for the period attributable to equity shareholders of the parent


 

44.7

 

25.6









Basic earnings per ordinary share

7

27.7p

19.5p





Diluted earnings per ordinary share

7

27.6p

19.1p





Adjusted basic earnings per ordinary share

7

37.3p

29.9p





Adjusted diluted earnings per ordinary share

7

37.1p

29.4p

 

Consolidated statement of comprehensive income

for the year ended 31 March 2012



2012

2011


Notes

£m

£m

 

Profit for the period


44.7

25.6

Other comprehensive (expense)/income




Foreign exchange translation differences


(12.1)

2.0

Effective portion of movement in fair value of interest rate swaps



(0.5)


0.8

Deferred tax on above


0.1

(0.2)

Actuarial (losses)/gains on defined benefit pension plans

9

(13.2)

5.6

Deferred tax on actuarial losses/(gains)


3.0

(2.0)

Other comprehensive (expense)/income for the period


(22.7)

6.2

Total comprehensive income for the period


22.0

31.8



Consolidated balance sheet

at 31 March 2012



2012

2011


Notes

£m

£m

Non-current assets




Goodwill


97.3

102.9

Other intangible assets


7.4

8.0

Property, plant and equipment


381.2

380.9

Derivative financial instruments


7.9

0.1

Deferred tax assets


22.6

25.7

Total non-current assets


516.4

517.6





Current assets




Inventories


145.2

146.9

Trade and other receivables


185.5

186.5

Cash and cash equivalents


34.3

23.0

Total current assets


365.0

356.4





Current liabilities




Bank loans and overdrafts


(2.0)

(57.2)

Trade and other payables


(296.8)

(298.2)

Current tax liabilities


(9.5)

(7.6)

Employee benefits


(5.5)

(2.0)

Provisions and other liabilities


(6.4)

(15.5)

Derivative financial instruments


(0.1)

(0.4)

Total current liabilities 


(320.3)

(380.9)

Net current assets/(liabilities)


44.7

(24.5)

Total assets less current liabilities


561.1

493.1





Non-current liabilities




Bank loans and other borrowings

8

(200.2)

(144.5)

Employee benefits

9

(56.3)

(51.0)

Deferred tax liabilities


(29.7)

(29.7)

Provisions and other liabilities


(1.8)

(3.8)

Derivative financial instruments


(1.2)

(0.1)

Total non-current liabilities


(289.2)

(229.1)

Net assets


271.9

264.0





Equity




Called up share capital


8.3

8.1

Share premium account


90.4

86.2

Capital redemption reserve


0.9

0.9

Retained earnings


147.8

131.8

Cash flow hedging reserve


(0.6)

(0.2)

Cumulative translation differences reserve


25.1

37.2

Total equity attributable to equity shareholders of the parent


 

271.9

 

264.0

 



Consolidated cash flow statement

for the year ended 31 March 2012


         

 2012

2011



£m

£m

Cash flows from operating activities




Profit before tax


59.6

34.6

Net financing costs


13.3

3.2

Profit from operations


72.9

37.8

Adjustments for:




Impairment loss on intangible assets


0.2

-

Amortisation of intangible assets


2.5

1.2

Impairment loss on property, plant and equipment


7.0

0.7

Depreciation


45.2

28.7

Share-based payments


1.2

0.9

(Profit)/loss on disposal of property, plant and equipment


(0.2)

0.7

Decrease in provisions


(14.3)

(11.7)

Other non-cash items


(2.2)

-

Operating cash flows before movements in working capital


112.3

58.3

Increase in inventories


(5.6)

(24.9)

Increase in receivables


(1.6)

(9.6)

Increase in payables


10.1

57.1

Cash generated by operations


115.2

80.9

Taxes paid


(5.3)

(6.5)

Interest paid


(9.8)

(5.1)

Net cash from operating activities 


100.1

69.3





Cash flows from investing activities




Interest received


0.3

0.6

Proceeds on disposal of property, plant and equipment


1.0

2.2

Acquisition of property, plant and equipment


(72.2)

(43.3)

Acquisition of intangible assets

Acquisition of business

Proceeds on disposal of business


(2.5)

-

0.7

(1.5)

(197.6)

-

Net cash flows from investing activities


(72.7)

(239.6)





Cash flows from financing activities




Dividends paid


(19.8)

(10.6)

Purchase of own shares


(0.8)

(0.8)

Proceeds from the issue of share capital


4.4

85.9

Repayments of borrowings


(189.1)

(35.6)

New bank loans raised


189.1

123.7

Net cash flows from financing activities


(16.2)

162.6









Net increase/(decrease) in cash and cash equivalents 


11.2

(7.7)

Cash and cash equivalents at beginning of period


23.0

32.2

Effect of foreign exchange rate changes


0.1

(1.5)

Cash and cash equivalents at end of period


34.3

23.0





Cash and cash equivalents comprise:




Cash at bank


34.3

23.0



34.3

23.0



Consolidated statement of changes in equity

for the year ended 31 March 2012

 


Share capital

Share premium account

Capital redemption reserve

Translation reserve

Cash flow hedging reserve

Retained earnings

Total equity


£m

£m

£m

£m

£m

£m

£m

At 1 April 2010

5.0

3.4

0.9

35.2

(0.8)

112.7

156.4

Profit for the period

-

-

-

-

-

25.6

25.6

Actuarial gains

-

-

-

-

-

5.6

5.6

Deferred tax on actuarial gains

                             -

                        -

                           -

                           -

-

 

(2.0)

 

(2.0)

Exchange differences on foreign currencies

                            -

                       -

                          -

                         2.0

 

-

-

 

2.0

Movement in fair value of swaps

                           -

                         -

                      -

                     -

 

0.8

-

 

0.8

Deferred tax on hedging movements

                            -

                      -

                          -

                     -

 

(0.2)

-

                          (0.2)

Total comprehensive income for the period

-

-

-

2.0

0.6

29.2

31.8

Issue of shares

3.1

82.8

-

-

-

-

85.9

Equity-settled share-based payments 

                            -

                         -

                         -

                            -

-

 

0.8

                      0.8

Deferred tax on equity-settled share-based payments

                            -

                         -

                         -

                            -

-

0.5

0.5

Purchase of own shares

                            -

                      -

                          -

                     -

 

-

 

(0.8)

                          (0.8)

Dividends paid

-

-

-

-

-

(10.6)

(10.6)

Total transactions with owners recorded directly in equity

3.1

82.8

-

-

-

(10.1)

75.8

At 31 March 2011

8.1

86.2

0.9

37.2

(0.2)

131.8

264.0









At 1 April 2011

8.1

86.2

0.9

37.2

(0.2)

131.8

264.0

Profit for the period

-

-

-

-

-

44.7

44.7

Actuarial losses

-

-

-

-

-

(13.2)

(13.2)

Deferred tax on actuarial losses

                             -

                        -

                           -

                           -

-

 

3.0

 

3.0

Exchange differences on foreign currencies

                            -

                       -

                          -

                         (12.1)

 

-

-

 

(12.1)

Movement in fair value of swaps

                           -

                         -

                      -

                     -

 

(0.5)

-

 

(0.5)

Deferred tax on hedging movements

                            -

                      -

                          -

                     -

 

0.1

-

                          0.1

Total comprehensive (expense)/income for the period

-

-

-

(12.1)

(0.4)

34.5

22.0

Issue of shares

0.2

4.2

-

-

-

-

4.4

Equity-settled share-based payments

                            -

                         -

                         -

                            -

-

 

1.2

                      1.2

Current tax on share options exercised

                            -

                         -

                         -

                            -

-

1.2

1.2

Deferred tax on equity-settled share-based payments

                            -

                         -

                         -

                            -

-

(0.3)

(0.3)

Purchase of own shares

                            -

                      -

                          -

                     -

 

-

 

(0.8)

                          (0.8)

Dividends paid

-

-

-

-

-

(19.8)

(19.8)

Total transactions with owners recorded directly in equity

0.2

4.2

-

-

-

(18.5)

(14.1)

At 31 March 2012

8.3

90.4

0.9

25.1

(0.6)

147.8

271.9

 

1.  


1.   Basis of Preparation

 

The financial information set out in this announcement does not constitute the Company's statutory accounts for the years ended 31 March 2012 or 2011.  The financial information for the year ended 31 March 2011 is derived from the statutory accounts for 2011 which have been delivered to the Registrar of Companies.  The auditors have reported on the 2012 accounts; their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the 2012 statutory accounts or under section 237(2) or (3) of the Companies Act 1985 in respect of the 2011 statutory accounts. The statutory accounts for 2012 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

 

 

2.   Accounting Policies

These extracts from the Group financial statements for the year ended 31 March 2012 have been prepared in accordance with International Accounting Standards and International Financial Reporting Standards that were effective as at that date and as adopted by the EU ('Adopted IFRS').

 

 

3.   Operating Segments

 

The information reported to the Group's Board of Directors, considered to be the Group's chief operating decision maker for the purpose of resource allocation and assessment of segment performance, is based on manufacturing conversion process. The businesses that use these processes can be found in the Operating Review.

 

Information regarding the Group's operating segments is reported below.

 

Segment revenues and results


 

The accounting policies of the reportable segments are the same as the Group's accounting policies. Segment profit represents the profit earned by each segment with an allocation of central items. Pricing of inter-segment revenue is on an arm's length basis.

 

The following is an analysis of the Group's revenue and results by reportable segment:

 

Injection Moulding

Thermoforming

Blow Moulding

Total

2012

2011

2012

2011

2012

2011

2012

2011

£m

£m

£m

£m

£m

£m

£m

£m









External sales

657.7

369.0

287.7

281.4

184.5

168.8

1,129.9

819.2

5.2

4.0

0.1

0.1

1.0

1.1



662.9

373.0

287.8

281.5

185.5

169.9



















66.8

30.9

13.7

14.7

13.0

10.2

93.5

55.8















(13.4)

(17.3)







(7.2)

(0.7)







(13.3)

(3.2)







59.6

34.6







(14.9)

(9.0)







44.7

25.6









527.3

527.9

185.8

163.4

125.1

112.7

838.2

804.0







43.2

70.0







881.4

874.0


















229.6

244.7

73.9

63.2

61.1

58.4

364.6

366.3







50.5

49.8







415.1

416.1

 

Net operating assets (NOA) are defined as tangible fixed assets, inventories, trade and other receivables and trade and other payables.  All assets and liabilities within segment  NOA exclude the impact of any revaluation adjustments which are reported centrally as unallocated NOA.

 

 

40.2

211.1

23.7

14.9

10.0

8.4

73.9

234.4

33.6

17.0

7.7

7.2

6.4

5.7

47.7

29.9

4.6

-

2.3

0.4

0.3

0.3

7.2

0.7

 

Geographical information

           

The Group's revenue, profit and non-current assets (other than financial instruments and deferred tax assets) are divided into the following geographical areas:

 

2012


UK

Germany

France

Other

Mainland Europe*

Total


£m

£m

£m

£m

£m

£m








External sales

241.0

354.6

151.4

382.9

888.9

1,129.9

Operating profit

21.0




72.5

93.5

Return on sales

8.7%




8.2%

8.3%

Non-current assets

89.8

114.0

29.4

252.7

396.1

485.9



2011


UK

Germany

France

Other

Mainland Europe*

Total


£m

£m

£m

£m

£m

£m








External sales

207.0

285.9

108.3

218.0

612.2

819.2

Operating profit

19.7




36.1

55.8

Return on sales

9.5%




5.9%

6.8%

Non-current assets

122.7

117.4

58.9

192.8

369.1

491.8

 

 

* Mainland Europe also includes an operation in the USA whose sales are predominantly sourced from intra-group supplies manufactured in Europe.

 

Revenues from external customers have been identified on the basis of origin and non-current assets on their physical location.

 

4.   Restructuring, Closure Costs and Other Exceptional Items

 

 


2012

2011


£m

£m

Closure costs

6.7

8.7

Restructuring of operations

1.8

3.1

Integration / acquisition costs

5.7

3.3

Other exceptional items

(0.8)

2.2


13.4

17.3

 

 

 

2012

The Closure costs comprise the costs of the planned withdrawal from the vending cup business in mainland Europe announced in the year. Restructuring of operations comprise the final restructuring of operations under the RPC 2010 programme. Integration / acquisition costs comprise the closure of the Runcorn site and other integration costs associated with Superfos. Other exceptional items include £0.3m profit on sale of the Bramlage Verschlüsse wines and spirits closures operation, a non-core business.

 

2011

During the previous year the Group largely completed the RPC 2010 cost restructuring programme. It closed the last remaining site identified under the programme, being Goor (the Netherlands), and concluded the social plan to reduce headcount at its Marolles site in France.

 

          Transaction costs of £3.3m were expensed in connection with the acquisition of Superfos Industries a/s. Other exceptional items relate to substantial building damage to a warehouse at Kerkrade (the Netherlands) arising from severe weather conditions, and a legal claim brought in France in connection with a dispute over matters relating to employment legislation.

 

Impairment losses

 


2012

2011


£m

£m

Impairment losses recognised in respect of assets

7.2

0.7

 

During the year, the Group incurred a £7.0m write down of property, plant and equipment and a £0.2m write down of intangible assets at businesses that are in the process of being exited. These consist of Runcorn (UK) as part of the integration of the Superfos acquisition, the vending cup business in mainland Europe and the automotive components business in Neutraubling, Germany. In the previous year the Group incurred a £0.4m write down of property, plant and equipment at the sites that were closed and £0.3m relating to the substantial damage to a warehouse at Kerkrade.

 

5.   Net Financing Costs

 


2012

2011


£m

£m




Net interest payable

11.5

4.2

Mark to market (gain)/loss on foreign currency hedging instruments

(0.5)

0.6

Fair value adjustment to borrowings

0.6

(1.6)

Interest cost on retirement benefit obligations

7.7

-

Expected return on pension scheme assets

(6.0)

-


13.3

3.2

 

During the period the net financing costs for employee benefit obligations of £1.7m were reclassified from operating profit to net financing costs. See Note 9.

 

 

 

 

 

 

 

 

 

 

6.   Taxation


2012

2011


£m

£m




United Kingdom corporation tax at 26% (2011: 28%)

1.2

-

Overseas taxation

7.4

7.6

Total current tax

8.6

7.6




Deferred tax:



United Kingdom

2.1

1.8

Overseas

4.2

(0.4)

Total tax expense

14.9

9.0

 

 

7.   Earnings per Share

 

Basic

          Earnings per share has been computed on the basis of earnings of £44.7m (2011: £25.6m) and on the weighted average number of shares in issue during the year of 161,313,391 (2011: 131,167,065). The weighted average number of shares excludes shares held by the Employee Benefit Trust to satisfy future awards in respect of incentive arrangements.

 

Diluted

         Diluted earnings per share is earnings per share after allowing for the dilutive effect of the conversion into ordinary shares of the weighted average number of options outstanding during the year of 805,559 (2011: 2,305,920). The number of shares used for the diluted calculation for the year was 162,118,950 (2011: 133,472,985).

 

         Adjusted

         The directors believe that the presentation of an adjusted basic earnings per ordinary share assists with the understanding of the underlying performance of the Group. For this purpose the restructuring, closure costs and other exceptional items and impairment losses identified separately on the face of the Consolidated income statement together with the debit or credit for the foreign currency hedging instruments and exchange differences on bonds, adjusted for the tax thereon, have been excluded.

 

          A reconciliation from profit after tax as reported in the Consolidated income statement to the adjusted profit after tax is set out below:

 


2012

2011


£m

£m

Profit after tax as reported in the Consolidated income statement

44.7

25.6

Restructuring, closure costs and other exceptional items

13.4

17.3

Impairment losses

7.2

0.7

Foreign currency hedging instruments and exchange differences on bonds

0.1

(1.0)

Tax adjustments

(5.2)

(3.4)

Adjusted profit after tax

60.2

39.2

 



Adjusted basic earnings per share 

 

The weighted average number of shares used in the adjusted basic earnings per share calculation is as follows:

 


2012

2011

Weighted average number of shares

161,313,391

131,167,065

Adjusted basic earnings per share

37.3p

29.9p

 

Adjusted diluted earnings per share

 

The weighted average number of shares used in the adjusted diluted earnings per share calculation is as follows:

 


2012

2011

Weighted average number of shares (basic)

161,313,391

131,167,065

Effect of share options in issue

805,559

2,305,920

Weighted average number of shares (diluted)

162,118,950

133,472,985

Adjusted diluted earnings per share

37.1p

29.4p

 

 

8.   Non-current Liabilities


2012

2011


£m

£m

Bank loans and other borrowings

199.0

142.3

Finance leases

1.2

2.2


200.2

144.5

           

The maturity of current and non-current bank loans, overdrafts and other borrowings is set out below:




2012

2011


£m

       £m

Repayable as follows:



  In one year or less

1.4

56.3

  Between one and two years

2.3

115.4

  Between two and five years

2.4

10.3

  Greater than five years

194.3

16.6


200.4

198.6

These facilities comprise:

 

(i)    a multi-currency revolving credit facility of up to £200.0m at normal commercial interest rates falling due on 30 September 2015;

 

(ii)   US private placement notes of $92m and €35m expiring on 15 December 2018;

 

(iii)   US private placement notes of $124m and €25m expiring on 15 December 2021;

 

(iv)  uncommitted overdraft facilities of £10.0m, €27.0m and other small local facilities; and

 

(v)   mortgages secured on manufacturing facilities totalling £14.8m (2011: £16.0m) as at

31 March 2012.

 



The currency and interest rate profile of the Group's net debt, after taking account of the impact of interest rate swaps, is as follows:


Fixed rate

2012
£m

Floating rate

2012
£m

Cash at bank

2012
£m


Total

2012
£m

Fixed           rate

2011
£m

Floating rate

2011
£m

Cash at bank

2011
£m


Total

2011
£m










Sterling

 -

-

(16.5)

(16.5)

-

-

(16.8)

(16.8)

Euro

 52.4

4.4

(15.6)

41.2

5.3

171.5

(0.4)

176.4

US dollar

88.3

45.0

(0.2)

133.1

-

24.9

(1.3)

23.6

Other

0.3

11.8

(2.0)

10.1

-

-

(4.5)

(4.5)


141.0

61.2

(34.3)

167.9

5.3

196.4

(23.0)

178.7

 

 

 



 

 

 

 

 

9.   Employee Benefits

 

The liability recognised in the Consolidated balance sheet for long-term employee benefits and the movement in retirement benefit obligations was:

 


2012

2011


£m

£m




Liability at 1 April

45.5

50.3

Net liabilities acquired on acquisition

(0.1)

6.6

Total expense charged to the Consolidated income statement

2.6

3.4

Actuarial losses/(gains) recognised in the Consolidated statement of comprehensive income

 

13.2

 

(5.6)

Contributions and benefits paid

(9.1)

(9.2)

Exchange differences

(1.2)

-

Liability at 31 March

50.9

45.5




Termination benefits

2.0

2.1

Other long-term employee benefit liabilities

3.4

3.4

Liability at 31 March

56.3

51.0

 

Included within total expenses charged to the Consolidated income statement above is £1.7m (2011: £1.8m) of net financing costs being the interest costs on liabilities and expected return on assets relating to the Group's retirement benefit obligations. For 2011/12 these costs have been disclosed as net financing costs in the Consolidated income statement in order to comply with future changes to IAS 19. In 2010/11 they were included in operating costs.

 

 

Retirement Benefit Obligations

 

The liability recognised in the Consolidated balance sheet for retirement benefit obligations is:

 

As at 31 March 2012

UK

Netherlands

Germany

France

Other mainland Europe 

   Group


£m

      £m

       £m

     £m

  £m

    £m








Present value of funded obligations

118.1

24.6

-

-

0.2

142.9

Fair value of plan assets

(89.1)

(21.2)

-

-

(0.1)

(110.4)


29.0

3.4

-

-

0.1

32.5

Present value of unfunded obligations

-

-

13.9

4.5

0.7

19.1

Unrecognised past service cost

-

(0.1)

-

(0.6)

-

(0.7)

Liability in the Consolidated balance sheet

 

29.0

 

3.3

 

13.9

 

3.9

 

 0.8

 

50.9

 

 

 

 

 

As at 31 March 2011

UK

Netherlands

Germany

France

Other mainland Europe 

   Group


£m

      £m

           £m

     £m

  £m

    £m








Present value of funded obligations

102.8

21.7

-

-

0.2

124.7

Fair value of plan assets

(77.1)

(18.3)

-

-

(0.1)

(95.5)


25.7

3.4

-

-

0.1

29.2

Present value of unfunded obligations

-

-

12.9

3.7

0.7

17.3

Unrecognised past service cost

-

(0.3)

(0.1)

(0.6)

-

(1.0)

Liability in the Consolidated balance sheet

 

25.7

 

3.1

 

12.8

 

3.1

 

0.8

 

45.5

 

The RPC Containers Limited Pension Scheme, which is the largest of the defined benefit pension schemes in the UK, was closed to new entrants and to future service accrual on 31 July 2010 and replaced with a contract based defined contribution pension plan for future service. The deficit as at 31 March 2012 calculated in accordance with IAS 19 was £25.3m (2011: £23.0m). As a result of the acquisition of Superfos Industries a/s, the Group acquired two closed trustee administered defined benefit pension arrangements in the UK providing benefits based on final pensionable salary and pensionable service. The Superfos Runcorn Limited Pension Fund was closed to future accrual on 5 April 2010 and the defined benefit section of the Peerless Limited Pension Scheme was closed to future accrual in 1994.

 

 

10. Exchange Rates

 

The closing rate of exchange for the euro at 31 March 2012 was €1.20 (2011: €1.13) and for the US dollar was $1.60 (2011: $1.61). The average rate of exchange for the euro for 2012 was €1.16 (2011: €1.18) and for the US dollar $1.60 (2011: $1.56).

 

 

11. Responsibility Statement

 

The 2012 Annual Report & Accounts contains a responsibility statement which was approved by the Board of Directors and signed by J R P Pike, Chairman and R J E Marsh, Chief Executive on 12 June 2012.

 

The directors confirm that to the best of their knowledge, the financial statements are prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and the Director's Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

 

The Annual Report & Accounts will be sent to all shareholders in June 2012 and will be published on the Group's website (www.rpc-group.com). Additional copies will be available from the Company's registered office at Sapphire House, Crown Way, Rushden, Northants, NN10 6FB.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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